India cabinet to consider $5.5b loan from World Bank arm

NEW DELHI (REUTERS) - India's cabinet will on Thursday consider a finance ministry proposal to borrow an additional US$4.3 billion (S$5.5 billion) from an arm of the World Bank, according to a cabinet agenda document.

Under the proposal India would borrow the money from the International Bank of Reconstruction and Development (IBRD), a World Bank subsidiary, according to the note seen by Reuters on Wednesday, which did not give more details.

It was not immediately clear how quickly the money would reach India if approved, or the terms of such loans.

A World Bank spokeswoman said she could not immediately comment. The IBRD usually gives such loans for development and infrastructure programmes, which are often disbursed in tranches over a long period.

India has been scrambling to shore up capital inflows to stabilise its volatile rupee currency.