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Interest-free loan from World Bank

The World Bank's agreement with the Government of Pakistan to provide $900m of financial support for reconstruction following the devastating floods is not "expensive borrowing" that Pakistan "can ill afford" .

The funding will come from the Bank's fund for the poorest countries, which means the loans are concessional and will attract no interest payments.

Moreover, this is already programmed money that is being diverted to meet immediate needs.

In addition, the Bank has made a grant of $1.3m through a fund for disaster reduction and recovery to support an urgently needed damage and needs assessment in the wake of the floods, to be led jointly by the Asian Development Bank and the World Bank, at the request of the government.

Some of this grant has already been used to purchase rescue boats, delivered to the government last week.

Isabel Guerrero, Vice-President, South Asia Region, The World Bank

Washington DC

Belfast Telegraph


From Belfast Telegraph