Q. Consider the following statements regarding International Development Agency (IDA):
1. It is known as the soft window lending agency of the International Monetary Fund.
2. India is the biggest beneficiary of the IDA support.
Which of the statements given above is/are NOT correct?
The International Development Agency (IDA) which is also known as the soft window of the WB was set up in 1960 with the basic aim of developing infrastructural support among the member nations, long-term lending for the development of economic services.
- Its loans, known as credits are extended mainly to economies with less than $895 per capita income.
- The credits are for a period of 35–40 years, interest-free, except for a small charge to cover administrative costs.
- Repayment begins after a 10-year grace period. There was no human angle to its lending. But now there remain no hard and fast differences between the purposes for the IBRD and IDA lending.
- Every year developing nations make enough diplomatic attempts to carve out maximum loan disbursal for them.
- India had been the biggest beneficiary of the IDA support. The total support (IBRD + IDA) for India had been $ 91.81 billion till date.
Source: TMH Ramesh Singh