KM Mani cautions about WB loan

Thiruvananthapuram: KM Mani, former finance minister of Kerala, has expressed his concerns over accepting loans from World Bank and Asian Development Bank (ADB) for the reconstruction of the flood-affected state. If the loan is availed at a time when the value of rupee against dollar is too low, the value of the loan will also be low comparing to the liability inflicted. Hence, the dollars at the hands of World Bank and ADB will be sold in the state at the rate of Rs. 72/dollar, KM Mani pointed out.

It is better to avail a long term loan with moratorium from a consortium of banks. The disaster management account of the Chief Minister has so far raised more than 1,000 crores. The amount will be five thousand crores if one month's salary of the employees and contributions from the expats are added.

Rs. 100 crore will be required to give Rs. 10,000 to each family and Rs. 20 crore for giving compensation for the dependants of those who died during the floods.Houses can be built in a time-bound manner by organisations. To assist the affected farmers and merchants, bank loans should be arranged from banks. World Bank and ADB should be approached for loans only if needed further, Mani said.