New Delhi, June 2 : India has decided not to take any more aid from bilateral partners other than Japan, the UK, Germany, the US, EC and Russia. The government has also decided not to accept any tied aid in the future.
A statement issued today said since no aid will be taken from bilateral partners with smaller assistance packages, the resources can be transferred to other developing countries in greater need of development assistance. In India, this aid would be directed towards NGOs working in specified areas.
The government has also decided to pre-pay outstanding bilateral debt of Rs 7,490 crore owed to 14 countries including Russia, Canada, the Netherlands, Sweden, Switzerland, Saudi Arabia and Australia.
This will leave as outstanding only bilateral debt that has to be paid to Japan, Germany, the US and France. The will help reduce the debt burden as announced in the Union budget.
The finance ministry has also issued new accounting standards for governments which stipulate that any ‘letter of comfort’ issued by the government may be treated as an implicit guarantee. However, contingent liabilities arising from social benefits are excluded.