India’s central bank announced on May 5 the release of $6.7 billion in low-interest loans to help the health care system respond to the second wave of the country’s fierce new coronavirus outbreak.
India’s once seemingly controlled outbreak has taken a sharp turn for the worse recently, with 3,780 people dying in the last 24 hours and 382,000 new infections in 24 hours. The chronically underfunded healthcare system has long been overwhelmed. Many patients are dying outside hospital doors because they cannot be admitted for treatment or lack the necessary oxygen.
Central Bank Governor Shaktikanta Das announced on May 5 the release of $6.7 billion in low-interest loans to help the health care system cope with the crisis. He said the priority is to preserve human lives and do everything possible to restore the means of sustenance.
This preferential loan measure will be extended until the end of March next year. The central bank also promised to take “unconventional” measures if the situation continues to worsen.
Das said that the virus is rapidly causing catastrophic consequences in different regions and the response must be rapid and large-scale, phased and planned. But he did not suggest that the government introduce a national closure of the city to prevent the epidemic. At present, only areas with severe outbreaks have been closed to foot traffic.
The central bank’s preferential lending measures are designed to help improve the emergency capacity of the health system during the epidemic by facilitating bank loans to hospitals, oxygen manufacturers and patients. In addition, the central bank will also extend the loan repayment period for some businesses to support economic operations.
Since the outbreak of the new crown, 222,000 people have died in India, and at least 20 million people have been infected nationwide. Experts estimate that the number of infections could continue to rise until the end of May, even reaching 500,000 new cases per day.
Fearing a return to the economic devastation caused by last year’s closure, the Indian government has taken a series of restrictions, but has not yet resolved to close the country. The government is now pinning its hopes on a vaccination campaign that began earlier this year to alleviate the outbreak.
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