ADB Approves $60m Loan to Arunachal
June 24, 2009
The Asian Development Bank (ADB) has indicated that it will proceed with the proposed $60 million loan to Arunachal Pradesh, despite strong objections by China. The $60 million forms part of the ADB’s $2.9 billion lending program to India.
China’s attempt to block Arunachal Pradesh as a loan recipient stems from a territorial dispute with India.
ADB spokeswoman, Ms. Ann Quon, pointed out that it was inappropriate for the ADB to take a position on territorial disputes between its members. Quon further clarified that only economic considerations were relevant in ADB decisions.
The $60 million loan to Arunachal Pradesh is earmarked to assist in flood management and ecological problems.