Amid tension from China, India took a loan check of millions of dollars from the same bank

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Tension on the border between India and China is at its peak. Meanwhile, after a written statement in Parliament on Wednesday, the opposition has become an attacker on the Modi government at the Center.

The Congress party is saying that on the one hand when Indian soldiers were killed in a clash with China on the border in Ladakh, on the other hand the central government was taking loans from the ‘Chinese bank’.

Actually, it started after a written statement by Minister of State for Finance Anurag Thakur.

Two BJP MPs questioned how the Center used the fund to deal with the situation arising out of the Corona virus epidemic and sent it to the states?

On this question, the information given to Minister of State for Finance Anurag Thakur came to the notice that the Central Government took loan from the China-based Asian Infrastructure Investment Bank (AIIB) twice after the onset of the corona epidemic.

Anurag Thakur said, “As part of measures to tackle the Kovid-19 crisis, the Government of India signed two loans from the Asian Infrastructure Investment Bank. The first loan was taken on 8 May 2020 for $ 500 million. It is’ India’s Kovid-19 Emergency measures and health system preparedness projects were taken to partially support the project. The aim of this project was to tackle the threat posed by the epidemic and strengthen the national health system to deal with any situation. “

How much money did India get?

Anurag Thakur had told that AIIB has given $ 250 million out of this.

After this, India signed the second loan on June 19. It is noteworthy that on June 15, 20 Indian soldiers were killed in a skirmish between Indo-China soldiers in the Galvan Valley of East Ladakh.

Anurag Thakur told the Parliament, “On June 19, 2020, the second loan was signed, which was $ 750 million. This was in the form of budgetary support of the Government of India to accelerate India’s Kovid-19 Social Security Measures Program. Prime Minister Poor Many steps have been taken in this program run under the Kalyan Yojana (PMGKY). The benefit of which was extended to the states and union territories. “

He said, “All the beneficiaries under PMGKY have benefited from this loan. So far, the entire amount of this loan has been given under this program.”

This means that the Government of India signed a sum of $ 125 million which amounts to more than 9200 crores in Indian rupees. Out of this, India has got 100 million dollars so far, which means that India has got only about 7300 crores.

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After these figures came out, Congress leader Rahul Gandhi tweeted and asked, ‘Modi government is with Indian Army or with China?’

After this, many Congress leaders became attackers on the Modi government. A Congress leader even tweeted that ‘Is PM Modi selling our land for money?’

After this, Twitter started trending #AIIB on Wednesday in which some were criticizing the Modi government, while some were saying that it is a development bank which has no relation with the Commercial Bank of China.

What is the end AIIB

The Asian Infrastructure Investment Bank ie AIIB is a multinational bank.

In English, it is called Multilateral Development Bank or MDB, which is an international financial institution formed by two or more countries.

This institution comes into existence after agreeing on various manifestos, which aim to accelerate economic development in poor countries. In addition, it also gives loans or grants to member countries for social and economic development.

There can be many types of MDBs, but as an example, we can understand that World Bank, Asian Development Bank, Inter-American Development Bank are also the same type of MDB.

The 100 billion dollar AIIB started functioning from January 2016 and is headquartered in China’s capital Beijing.

The bank was proposed by the Chinese President Xi Jinping at the Asia Pacific Economic Cooperation in Bali in 2013, after which 57 countries together established it.

Many analysts believed that this bank would be a challenge for international lenders who have been accused of adopting US foreign policy. Japan is also not a member of AIIB as it is believed that Japan has influence on Asian Development Bank.

India has been one of the founding countries of this bank and today there are 103 countries members in this bank, which includes Germany with the largest economy in Europe besides Asia. China holds the highest 26.59% stake in this bank, followed by India.

India has a 7.61% stake in AIIB. After this, Russia and Germany are major stakeholders.

China has a big influence on this bank?

AIIB clearly states on its website that it is investing in sustainable infrastructure and other productive sectors for the better future of billions of people in Asia and beyond.

The functioning of this bank is looked after by the Board of Governors, in which there is one governor and one governor from every country. The Governor from India is Finance Minister Nirmala Sitharaman while the alternate Governor is Tarun Bajaj, Secretary in the Government of India.

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At the same time, the chairman of the bank staff is overseen by its chairman who is elected through elections for five years. Presently, its president is Jin Liku who is from China and has been elected its president for the second time.

However, AIIB has been accused of controlling China and the reason for it being its highest voting share.

China has the highest number of 3,00,055 votes, followed by India with the highest number of 85,924 votes and at the same time India is one of the largest countries to borrow from AIIB.

AIIB started a $ 5 billion relief fund to help the affected countries after the Kovid-19 epidemic, under which this bank has also helped India the most. Under this fund, India was given loans of 50 and 75 million dollars. Apart from this, India has already taken a loan of three billion dollars from AIIB for many development projects.

At the same time, AIIB has also given $ 750 million to Philippines-Indonesia, $ 500 million to Pakistan and $ 250 million to Bangladesh for Kovid-19.

Is China’s money in Aib?

Is AIIB getting money from China? On this, economist Pranjoy Guha Thakurta says that it is an MDB in which money does not come only from China, but there is money from many countries like Russia and Germany, so it cannot be said that money has come from China.

He says that there is no opinion that China has the largest share in it.

At the same time, economist and professor Dr. Arun Kumar says that China had started the initiative of this bank, then there is no doubt that the dominance of this will also remain with China and the same will be where there is investment and where it is not.

“China set up this bank unlike the Asian Development Bank (ADB) because ADB is under the control of Japan and the United States, so China brought in a bank under its control. China has a significant foreign exchange reserves and is in many countries Investing in. China is also investing under the One Belt One Road project. With the formation of this bank, it can invest in any place of its choice. “

India is not involved in the One Belt One Road project while he is one of the founding members of AIIB.

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Professor Arun Kumar says that organizations like IMF, ADB give loans on conditions, AIIB may have done the same but the biggest question is why India needs to take loan?

He says, “India has a foreign exchange reserves of 500 billion dollars and these banks are not able to lend much debt. So why are we taking loans from them? We should spend our own money and run our own policy and Be independent because these organizations interfere in your policy making. “

“India’s fiscal deficit has gone below 23%. India should not take loans in such a situation. If India has taken loan for Kovid-19 then we already have money to give to the poor, 90 million tonnes There is a grain stock, it can be distributed. What is the need to take money from the World Bank, AIIB, ADB is not clear. “

After the India-China border dispute, it was seen that a demand for a ban on Chinese goods arose. After this, in July, India banned 59 Chinese mobile apps and then closed 118 Chinese mobile apps in September.

Also, the Government of India had earlier issued orders to the companies of neighboring countries to take approval from the Ministry of Home Affairs to take tenders in the states. It is believed that this has been done to control China.

After the AIIB loan, China’s official newspaper Global Times wrote that the decision was already taken. Also, it shows that border skirmishes will not have any effect on the economic relations of the two countries.

The newspaper further writes that China has good intentions about India and does not want to impede its economic development.

From the statement of Global Times newspaper, it seems that China considers AIIB as its property. However, in the investigation of fact checks, we have found that China has more influence on AIIB but it is completely under its control and neither is the bank’s money only Chinese money. AIIB is a multilateral development bank aimed at improving social and economic outcomes in Asia.

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