Japanese agency to lend over $2.25 bn to India

New Delhi, Feb 01: Japan International Cooperation Agency, which lends for development projects in emerging economies, has said it would disburse more than its targeted USD 2.25 bn loans to India in the remaining part of this fiscal. Despite the economic downturn, the agency does not foresee any fall in its lending activities for India and rather expect the actual receivables by the projects in India in terms of US dollar to also benefit from the appreciation in the Japanese currency yen.

"We have planned to provide loan of around USD 2.25 bn under various Officials Development Assistance (ODA) programmes in India. But we are expecting to disburse slightly more than this amount," JICA's Chief Representative in India Irigaki Hidetoshi told reporters. Japan International Cooperation Agency (JICA) is an organisation established by the Japan government for implementing its Officials Development Assistance programmes. Under ODA programmes, JICA gives loans for various development projects to developing countries.

Hidetoshi said, "We do not have any plan to reduce our planned loan target for India. Since we are government agency, we are required to pump more money for various development projects in the developing countries to reduce the impact of recession..." He further added that "India would eventually get even more money than we disburse because of yen appreciation and weakening of dollar due to recession. A US dollar was available for 120 yen last year which is now trading near 90 yen." JICA is to disburse 225.13 billion Yen during this financial year which comes to around USD 2.25 bn at an exchange rate of one USD for 100 yen. But since a USD is selling at around 89 yen, India would be benefited from the Japanese currency appreciation.

Bureau Report