Financial Daily from THE HINDU group of publications
Friday, Apr 19, 2002
Financial Daily from THE HINDU group of publications Friday, Apr 19, 2002 |
|
|
|
|
|
Industry & Economy
-
Economy Kerala: ADB plans talks for $300-m loan Our Bureau
NEW DELHI, April 18 THE Asian Development Bank (ADB) has announced its decision to hold "detailed discussions'' with the Kerala Government regarding a $300-million loan, which has been the eye of a storm with the Opposition assailing the State Government for "capitulating to conditionalities". An ADB team on a preliminary fact-finding mission for the loan held initial discussions with the Department of Economic Affairs and the Department of Expenditure, Ministry of Finance on April 15 on a proposed Public Resource Management Loan of a likely size of $300 million for Kerala, which is aimed at helping ensure smooth delivery of public services. A bank release stated that the proposed ADB loan would bolster the implementation of policy reforms agreed between the Central and Kerala Governments, which are reflected in two Memoranda of Understanding as well as new reform initiatives of the State Government. The ADB mission leader, Mr William McCarten, said that the loan could potentially amount to $300 million, subject to further examination and consultation with the Government. Its main components are likely to include support for achieving performance targets agreed between the two Governments relating to pro-poor growth, fiscal reforms, restoration of financial viability of the power sector and modernisation of public management for improved delivery of public services. Mr McCarten, who is leading a five-member team to Thiruvananthapuram, said that the proposed assistance to Kerala is the third in the series of such loans being provided by ADB under its State Focus operations in the country. The earlier two loans were given to Gujarat and Madhya Pradesh. He added that different components of the loan would be earmarked for specific items of growth promoting public expenditure and investment. Successful implementation of the programme should help expedite the pace of poverty reduction in Kerala. The Country Director of ADB's India Resident Mission, Mr Frank Polman, the ADB Director, Mr Klaus Gerhausser, and the ADB Chief Economist for India, Mr Sudipto Mundle, are supporting the mission in advisory capacities.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|