The Ministry of Finance, Department of Economic Affairs and the German Government Bank, KfW signed two Loan Agreements for effectuating financial assistance from Germany amounting to Euro 190 millions on 20th December, 2007.
The first agreement is for providing soft loan of Euro 140 million for the purpose of revamping the rural co-operatives in India through the project 'Reform of the Rural Cooperative Credit Structure Project' which will be implemented by NABARD.
Government of Germany had committed the funds in separate tranches during the Indo-German Annual Negotiations held in 2005 and 2006 respectively.
The funding is to be used for financing the cooperative credit structure reforms in the country, which is also being co-financed by the ADB. The project is being implemented by NABARD.
In addition, Loan and Financing Agreement for ninth tranche of German assistance amounting to Euro 50 million for Pulse Polio Immunization Programme of the Health Ministry was also signed.
Government of Germany has been extending support to Pulse Polio Immunization Programme since 1997 and have so far extended assistance of Euro 106.86 million in eight tranches which have largely been utilized.
In addition, Germans have already committed Euro 31 million and Euro 14.08 million as financial support to Pulse Polio Immunization Programme in tenth and eleventh tranches respectively.
The Agreements were signed by Shri Kumar Sanjay Krishna, Joint Secretary, Department of Economic Affairs on behalf of Government of India and Mr. Uwe Ohls, Senior Vice President for Asia, KfW on behalf of KfW.
Press Information Bureau Government of India
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