How the Asian Development Bank do?

1. The operations of the ADB

1.1  The Principal Operation

The ADB’ s principal mode of operation is the provision of capital assistance for development projects, in the form of loans on either ordinary or concessional terms.

Loans from the Bank’s ordinary capital resources (OCR) have 2 to 7 year grace period and a maturity period of 10-30 years, and have carried interest rates on its pool-based US dollar loan facility will be 6.69 percent per annum for the period from 1 January to 30 June 2002. ADB will reduce its rate on the outstanding pool-based multi-currency loans from 5.21 percent to 5.08 percent per annum for the same period. Ordinary loans are made for all sectors of bank activity, and have concentrated on the member countries with a relatively high gross national product (GNP) per capita, particularly the Association of Southeast Asian Nations (ASEAN) countries and the East Asian developing countries.

Concessional loans have been granted mainly to the least developed members, particularly in South Asia, and are often more directly poverty-oriented, focusing predominantly on agriculture and rural development. By the end of 2002, ………………..Concessional loans from the Bank’s special fund resources have a 10-year grace period, a maturity period of 40 years, and carry interest only in the form of a 1 per cent service charge.

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1.2  Technical Assistance as well as various regional activities

In addition to its lending activities, the bank provides technical assistance grants and has carried out various regional activities. 

Technical assistance is intended mainly to help the borrowing countries in project preparation and implementation, and has concentrated on the least developed member countries. And the Bank’s regional activities include the undertaking or commissioning of various regional surveys and studies, and the organizing of meeting, seminars and workshops.

Technical assistance and regional activities provide the ADB with a means of influencing the formulation of development policies in ...

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