India Took Two Loans Of Over Rs 9,000 Cr From China Backed Bank AIIB

The Central government on Monday confirmed that India took two loans of over ₹9,000 crore from Beijing-based Asian Infrastructure Investment Bank (AIIB), where China is the largest stakeholder, in order to supplement for its fight against the coronavirus crisis.

Minister of State for Finance Anurag Thakur made the revelation in response to BJP MPs Sunil Kumar Singh and PP Chaudhary questions in the Lok Sabha as to how the government had put the funds to use and whether they had been transferred to the states, reported Scroll.

Loans of ₹9,202 crores (USD 1,350 million) from AIIB were taken amid the border standoff. The first loan agreement was signed on May 8 for ₹3,676 crores (USD 500 million), and the second for ₹5,521 crores (USD $750 million) on June 19, three days after the deadly attack on Galwan valley that claimed the lives of 20 soldiers.

The loans were reportedly taken to back the 'India COVID-19 Emergency Response and Health Systems Preparedness Project' and measures taken under Pradhan Mantri Garib Kalyan Yojana (PMGKY).

Currently, AIIB has released the amount of ₹1,847 crores (USD 251.25 million) from the first loan, and these funds have been used to help states in the ongoing crisis, the media reported.

National spokesperson of Congress Pawan Khera took a dig at the government saying that India-the ongoing standoff in Ladakh is an example of the Modi government's incoherence in relaying real information to the nation. "PM lied about boycotting Chinese businesses and took two loans from Asian Infrastructure Investment Bank where China is the largest stakeholder," Khera told the media.

On one side, the government wants to end all financial ties with China, and on the other side they themselves are taking loans from a bank whose biggest shareholder is China, he added.

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