India and Japan sign deal for 50 billion yen loan to support poor people affected by Covid-19 | Latest India News
India and Japan on Friday signed an agreement for a loan of up to 50 billion yen (approx. ??3,550 crore) to support New Delhi’s economic support programs for the poor and vulnerable affected by the Covid-19 crisis.
CS Mohapatra, Deputy Secretary in the Department of Economic Affairs and Japanese Ambassador Satoshi Suzuki signed in New Delhi the agreement for loans with an interest rate of 0.65% per annum and a repayment period of 15 years , including a grace period of five years.
Japan previously provided budget support of 50 billion yen and aid of 1 billion yen (approximately ??71 crore) to support the efforts of the Indian government to counter the Covid-19 crisis.
The Japanese Embassy said vulnerable groups, including the poor and women, had been severely affected by the economic downturn caused by the pandemic.
“This loan provides the necessary funds for the Indian government to implement economic support programs for the poor and vulnerable and political reforms including, but not limited to, the health and medical sectors, which are essential in the fight against Covid-19, “the embassy said. said in a statement.
Financial support aims to support Indian government programs such as Pradhan Mantri Garib Kalyan Yojana (PMGKY), which aims to mitigate socio-economic impacts and strengthen socio-economic institutions. This includes food grain distribution programs to the poor and vulnerable, the provision of assistance and support to construction workers, and the provision of special insurance for health workers struggling against Covid-19.
“These measures are expected to contribute to more stable and sustainable socio-economic development in India,” the statement said.