India offers $20 billion as bailout option to Europe
Europe, which is mired by high debt crisis may soon get a breather from the Indian government who was recently included in the elite NAB. The bailout worth $20 billion is now awaiting approval from the Parliament.
INDIA SEEMS to have gotten into the philanthropic mood by giving last minute bailout options to the European Union. India has earlier given infrastructural bailout running into millions of dollars during Prime Minister’s visit to Afghanistan earlier in 2011. However, in a dramatic turn of events, twenty years ago India was left at the mercy of the International Monetary Fund (IMF) to prevent BoP (balance of payments) issues.
In the backdrop of the ongoing Monsoon Session of the Parliament, the government on Tuesday had forwarded its requisition to approve the bailout worth Rs 9,003 crore (approx $2 billion).
During the time when the crisis was at its peak in Europe, a new corpus New Arrangements to Borrow (NAB) was formulated in Europe with the loan limit increased to $500 billion.
However, even after the creation of the fund, the debt crisis refused to recede in Europe. Reports have it that more funding would be required from the European Union as well as independent bodies.
It may be noticed that in the last two years, the IMF was looked at as the last minute resort for bailout from the debt crisis across many European nations. Greece has so far received $300 billion in bailout and Portugal has received over $100 billion.
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