Exchange of Notes concerning Yen Loan to India for the COVID-19 Crisis Response Support Loan for Social Protection

On January 8, Mr. SUZUKI Satoshi, Ambassador of Japan to India, and Dr. C.S. Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, exchanged Notes in New Delhi, concerning the provision of a yen loan for response to COVID-19 (total loan provision of up to 50 billion yen).
Details of the Loan are as follows:
“COVID-19 Crisis Response Support Loan for Social Protection”
Maximum Amount: 30 billion yen
In response to the spread of the COVID-19 infection in India, the Government of Japan provided “COVID-19 Crisis Response Emergency Support Loan” (total loan provision of up to 50 billion yen) to provide the necessary funds for emergency response in the health and medical sectors in India.
Meanwhile, as a consequence of economic slowdown caused by the COVID-19 pandemic, the vulnerable groups, including the poor and women, have been severely affected. This loan provides the necessary funds for the Government of India to implement economic support programs for the poor and vulnerable and policy reforms, including but not limited to health and medical sectors, which are essential in the fight against COVID-19.
The financial support aims at supporting the Government of India in its endeavor through Pradhan Mantri Garib Kalyan Yojana (PMGKY) that was launched by Prime Minister Modi and aims at mitigating adverse socioeconomic impacts and strengthening socioeconomic institutions in India. It includes such programs as the distribution of food grains for the poor and vulnerable, the provision of assistance and support to construction workers, and the provision of special insurance scheme for health workers fighting COVID-19.
It is expected that these measures will contribute to a more stable and sustainable socioeconomic development in India.
Terms and Conditions of the Loans:

(1) Interest rate: 0.65% per annum
(2) Redemption period: 15 years (including a 5–year grace period)

                              Ambassador Suzuki                                                                      Dr. Mohapatra