BackNo loans for projects in disputed areas
No loans for projects in disputed areas
PremiumGrowth focus: Haruhiko Kuroda. Photo: Pradeep Gaur/Mint
New Delhi: The Asian Development Bank (ADB) will not approve loans for projects in a part of a country that is claimed by another member country.
China has been engaged in a territorial dispute with India over Arunachal Pradesh.
Kuroda was in New Delhi to be part of an event to commemorate 25 years of lending by ADB to India.
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Still, Kuroda was confident that China, which has already emerged as the world’s second largest economy, would peacefully coexist with its Asian neighbours.
According to him, the ongoing global crisis is structural in nature and Asian countries remain vulnerable. “The current financial or debt crisis in Europe has been already affecting Asian economies. ADB recently made downward adjustment of the economic forecast for developing Asia—entire Asia excluding Japan, Australia and New Zealand, will grow at 7.5% in 2011. But 7.5% growth next year is subject to greater uncertainty," he said.
Kuroda, however, remained confident that the euro zone countries would be able to evolve a strategy to prevent a meltdown.
anil.p@livemint.com
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