India seeks $4 bn assistance from ADB

The Asian Development Bank's chief says trade in Asia, growing at a fast clip since 2017, could be disrupted if disputes escalate.

ADB President Takehiko Nakao expressed his deep gratitude to the Philippine government, and Finance Secretary and Chair of the Board of Governors, Carlos G. Dominguez, for hosting the ADB Annual Meeting with the theme "Linking People and Economies for Inclusive Development". "Can you lend more?"

Bangladesh's economy registered a record high growth rate of 7.3 percent in 2017 as higher farm and wage incomes lifted private consumption, according to the ADB Annual Report 2017.

Mr. Garg also cautioned ADB against adopting different approaches while lending to countries, and said, "We do not believe differential pricing will either add to its capital, which is not needed at this moment, or lead to any significant revenue. Your contribution to our country's development is too evident to be ignored, and we can not thank you enough for that", he added. "We are fully aware that when the civil order weakens progress will no longer be possible", the President said.

The Philippines gross domestic product (GDP), or the rate of economic growth, breached the 6 percent mark on July of 2015 and it hasn't gone lower than that since.

He said infrastructure projects must be economically sound so countries can repay loans. "Fair warning", he added.

The President said he aims to match or even surpass the infrastructure base of neighboring economies to allow the country to compete for investments. "I'm positive. Not positive of sickness, but positive in terms of economic viability", Duterte said at the beginning of the speech, to break the ice with the crowd.

"Asia is a region of the world whose economic success over the last quarter century is very much built on free trade, and clearly we are hearing more negative voices from some corners of the globe on free trade and globalisation", Groff told Reuters.

Highlighting the need for increased private sector operations by ADB in India, he said that the government had approved ADB's proposal to garner additional resources through INR bonds in the offshore markets, a government statement said.

The Bank also stated that current account deficit is expected to be financed comfortably by capital flows, as India remains an attractive destination for foreign direct investment and portfolio flows. "We would do well to adopt country systems for procurement safeguards and other fiduciary policies", he said. "The next few years will be interesting times for the region".

He recognized the role of the ADB and the Philippines' other development partners in achieving the Duterte administration's ambitious infrastructure program.

  • Rogelio Becker