adb signs risk transfer deal with sida to increase lending capacity
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

ADB Signs Risk Transfer Deal With SIDA to Increase Lending Capacity

Egypt Today, egypt today

Egypt Today, egypt today ADB Signs Risk Transfer Deal With SIDA to Increase Lending Capacity

ADB.
Manila - QNA

The Asian Development Bank has signed an agreement with the Swedish International Development Cooperation Agency (SIDA) on a risk-transfer scheme under which SIDA will guarantee $155 million out of ADB's $455 million basket of five loans to India, a first for a sovereign loan portfolio for any multilateral development bank, the ADB announced Monday.

The ADB dedicated to reducing poverty in Asia said the pilot guarantee arrangement with SIDA will increase the bank's lending capacity by an estimated $500 million over a 10-year period and is being eyed by other multilateral development banks as a way to increase capital amid expanding financing needs for development goals.

Risk-transfer agreements pass specified risks from one party to another in return for a fee. The guarantee by SIDA, which has a triple-A credit rating, for ADB's clean energy loans to India, whose credit rating is triple B-, will improve the portfolio's risk profile and reduce capital held in reserve to cover guaranteed loans.

The arrangement became effective on October 1 and runs until the end of 2026. ADB Vice President Diwakar Gupta said because the bank's capital has recently increased, there is no urgency to create headroom. "it's a good starting point for us to gain experience on how we can do more of this kind of transfers." he said. 

Gupta said the risk-sharing arrangement will help the ADB provide sovereign loans to countries that do not have an investment grade credit rating, such as India. Starting in January the ADB will also merge its fund that provides concessional loans and grants to poorer countries and its ordinary capital resources that gives loans to middle-income countries at market-based rates. 

The move enhances ADB's risk-bearing capacity because it boosts the amount considered as equity, in effect increasing available funds for assistance by at least 50%. The ADB last year provided $27.2 billion in loans and grants, including co-financing of loans worth $10.7 billion.

Source : QNA

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

adb signs risk transfer deal with sida to increase lending capacity adb signs risk transfer deal with sida to increase lending capacity



GMT 09:06 2018 Thursday ,18 January

BMW aims to reignite US car sales

GMT 13:47 2017 Friday ,20 October

Tunisia foils infiltration attempt by 7 Africans

GMT 17:49 2012 Monday ,12 November

Sudan\'s minister hopes to showcase improvements

GMT 04:39 2016 Wednesday ,15 June

May goes down as Earth's hottest on record

GMT 08:34 2015 Thursday ,05 November

UAE urges unity to find fix for ozone layer

GMT 02:13 2017 Thursday ,05 January

Muscat Securities Market Gains 24.2 Points

GMT 11:19 2014 Saturday ,30 August

Brabus gets in tune with C-Class

GMT 03:14 2016 Wednesday ,28 December

Kiir: National dialogue will end civil war in S. Sudan

GMT 06:59 2017 Thursday ,09 November

Algerian footballer aspire to meet expectations

GMT 11:49 2017 Monday ,16 October

Merkel in poll setback before coalition talks

GMT 06:10 2015 Thursday ,02 July

North Korea opens new showcase airport terminal

GMT 11:34 2012 Monday ,23 January

Megaupload boss seeks bail in NZ
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday