ADB concerned about food price hike, inflation
June 30th, 2011 - 10:46 pm ICT by IANSKolkata, June 30 (IANS) The Asian Development Bank (ADB) is concerned about food price hike and inflation not only in India but in the whole of Asia, a top executive of the bank said Thursday.
“Any large economy is vulnerable to external shocks. But policy makers started taking measures quite some time back… though inflation is a concern. Inflation is a concerning factor not only in India but also in the whole region. We have a close watch on the situation,” ABD managing director general Rajat M. Nag told reporters on the sidelines of the 83rd Annual General Meeting of the Indian Chamber of Commerce (ICC) here.
“As economy of India and China grow, there will be a huge increase in demand for commodity. We are concerned about food prices,” he said.
On augmentation of ADB’s loan portfolio to India, Nag said he did not expect any significant hike in loan amount to the country.
“Our lending portfolio depends on our capital. I do not expect any significant hike in the loan amount to India. We try to do the best we can. This year loan provided to India is around $2 billion, mostly to viable infrastructure projects,” he said.
To a question on ADB’s introduction of bond guarantee fund in India, Nag said it was launched to deepen the capital market in the country.
“In India, infrastructure financing is made domestically, mostly by domestic banks. The product we launched is essentially to deepen the capital market. Infrastructure demand is huge and capital supply is inadequate, that is why we are positive about the product,” he added.
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