US DFC Board Approves $340 Million Loan To India – Free PDF Download

DETAILS

• The US has approved loans and investments worth more than $340 million for Indian firms and organisations as part of its efforts to uplift under-served communities around the world against the backdrop of the Covid-19 pandemic.

SOURCE OF LOANS

• Most of these loans were part of $1 billion in investments approved recently by the US International Development Finance Corporation (DFC)’sboard of directors to advance development in Africa, Latin America, the Indo-Pacific, and emerging markets.

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

• S. International Development Finance Corporation (DFC) is an independent agency of the U.S. Government that provides financing for private development projects. It was created by the bipartisan Better Utilization of Investments Leading to Development (BUILD) Act of 2018, which was signed into law by President Donald Trump on October 5, 2018

DFC AND CHINA

• How is the DFC different from what China offers?

INTEREST RATE

• Interest rate. The interest rate for direct loans and interest supplements on guaranteed loans shall be set by reference to a benchmark interest rate(yield) on marketable Treasury securities or other widely recognized or appropriate comparable benchmarks, as determined in consultation with the
• Director of the Office of Management and Budget and the Secretary of the Treasury.
• OTHER MEASURES TAKEN BY U.STO COUNTER CHINESE LENDING

DFC INDIAN INVESTMENT

• DFC, known as America’s development bank, has approved loans worth $142 million for ReNewPower and $50 million for Sitara Solar Energy to build and operate solar power plants in Rajasthan, $50 million for Northern Arc to scale up lending to businesses that expand access to water, sanitation, and food or advance women’s economic empowerment, besides committing to invest in several other projects.

DETAILS

• “The projects have a particular focus on development impact, with nearly 60 % of investments in low-and lower middle-income countries,” DFC said in a statement from Washington, adding that the investments are aimed at supporting financial services for women, small businesses, and other underserved groups at a time when capital is in desperate need.

INTEREST RATE TO INDIAN COMPANIES

DFC INVESTMENTS IN CPEC?

• There are talks of DFC investments in CPEC as well, although talks are in very early stage. The Talks were initiated by Pakistan

DFC AFRICA

Latest Burning Issues | Free PDF

Sharing is caring!