India can borrow $39 billion from IMF, World Bank

To help tide over the credit crisis, India can avail of loans worth $39 billion from the International Monetary Fund (IMF) and the World Bank, Planning Commission deputy chairman Montek Singh Ahluwalia told.

India can borrow up to $30 billion (up five fold) from the IMF to infuse short-term liquidity through low conditional loans. This will have to be repaid within nine months. “But with reserves of $200 billion, we really don't need this,” Ahluwalia said.

India can borrow an additional $9 billion from the World Bank, $3 billion a year, for development infrastructure projects. This is part of the $100-billion kitty that the bank has made available. “We are saying they need to go further,” Ahluwalia said.