Lending Base: ADB faces funding crunch, warns India

ADB seeks to reduce widespread poverty in emerging market nations and boost infrastructure.


Afp May 07, 2013

NEW DELHI: The Asian Development Bank (ADB) is facing a funding crunch as the multilateral lending agency seeks to reduce widespread poverty in emerging market nations and boost infrastructure, India warned Saturday.

Member countries of the Manila-based development bank need to consider ways to increase its resources to meet Asia’s massive needs for infrastructure, economic growth and to combat poverty, said India’s Finance Minister P Chidambaram.

“We may hit the wall (in funding) in about three years,” Chidambaram told the annual two day meeting of the ADB’s board of governors, noting the amount of lending by Asia’s main development bank is expected to decline from $10.1 billion to $8 billion annually billion.

Chidambaram noted that Asia needs a “humongous sum” of $8 trillion to $10 trillion over the next decade to upgrade its ports, roads and other infrastructure in order to fuel growth.

Published in The Express Tribune, May 5th, 2013.

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