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TDP denies charge on World Bank loan

By Our Special Correspondent

HYDERABAD Dec.7. Refuting the Opposition's contention that the caretaker Government has no legitimacy to avail a fresh loan from the World Bank, the Telugu Desam Party has clarified that the Bank was now releasing the second tranche of Rs. 1,110 crores as part of a previous agreement and that it was not a fresh loan.

Addressing a press conference here on Sunday, TDP's spokesperson and MP, C. Ramachandraiah and K. Ram Mohan Rao, MP, said that the second instalment was being released towards the structural readjustment programme and at a lower interest rate than the previous instalment. The Bank was releasing the second instalment after the State Government became eligible by implementing prudent fiscal measures as stipulated by the bank.

Explaining the details of the second instalment, they said that two-thirds of the amount would be in the form of loan and the rest would be a grant. Besides, only about 70 per cent of the two-thirds would be loan and the remaining 30 per cent would be a grant given by the Government. In effect, they maintained that the loan component would be 50 per cent and at a low interest rate of six per cent. They challenged the Left and other parties to suggest anybody else giving loans at lesser interest for the Government to consider.

Taking exception to the charge made by CPI(M) and other parties that the World Bank was dictating terms to the State Government, they said it only showed their "ignorance.'' They accused the Opposition parties of trying to defame the TDP Government while not at the same time coming out with better proposals or suggestions.

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