Japan to extend emergency loan support of Rs 3,500 crore towards India's fight against COVID-19

New Delhi: Japan on Monday said it will extend emergency loan support of up to Rs 3,500 crore (50 billion yen) towards India’s response to the Covid-19 pandemic that includes implementation of health and medical policy. Additional Secretary, Department of Economic Affairs of Finance Ministry, CS Mohapatra and Japanese ambassador Suzuki Satoshi exchanged notes here on Monday, concerning the provision of the yen loan to New Delhi to combat the COVID-19 pandemic. According to an official release by the Japanese embassy, this “COVID-19 crisis response emergency support loan” provides the necessary funds for India’s fight against coronavirus. This financial support will support the implementation of health and medical policy by the Government of India and will lead to the development of hospitals equipped with ICUs and infection prevention and management facilities. It is expected that these measures, in addition to controlling the spread of infection in the country, will also contribute to the recovery and stability of the country’s society and economy, as well as to sustainable development. The loan will have an interest rate of 0.01 percent per annum with a redemption period of 15 years, including a four year grace period. Moreover, both the countries also exchanged notes on a grant worth 1 billion Yen to India through Japan’s Official Development Assistance (ODA) scheme, namely, “The Economic and Social Development Programme”. It is expected that this grant aid will lead to reinforcing the fight against infectious diseases including COVID-19, in India, and contribute towards further strengthening cooperation between Japan and India.