Japan supports development assistance loan
On 31st August 2020, Japan has made the announcement of Development Assistance loan of 3,500 crores rupees to India. The Development Assistance loan will help India to combat with COVID-19 Crisis and it will be as COVID-19 Crisis Emergency Response Support. along with it, the loan will cover the implementation of health and medical policy.
CS Mohapatra (Additional Secretary) and Suzuki Satoshi (Japanese Ambassador ) shared this information.
Highlights –
- The loan will help India to fight with COVID-19 Disease and India will need to pay 0.01 per cent interest rate per year and Japan has offered redemption period of 15 years.
- Apart from this, Japan and India also swapped notes worth of 1 billion Yen to India. this is done as per the Official Developmental Assistance Scheme of Japan called ‘The Economic and Social Development Programme’.
- The loan can make India strong against Coronavirus pandemic. And this contract will make cooperation strengthen between both of two nations.
What is the purpose of the provided loan?
India needed COVID-19 crisis response emergency support loan as a result, Japan helps by offering fund to India.
Due to the loan, hospitals will be equipped with infection prevention, ICUs, and management facilities