The World Bank and other multilateral development banks have been urged by India to create special windows for ensuring finance for infrastructure development, which should include provision to help projects that face a sudden scarcity of funds due to volatile capital flows.
The request was made by Indian Finance Minister P Chidambaram said during his intervention at the G-20 meeting of finance ministers in Washington DC on October 11.
The Minister said that special windows need to be created in the World Bank and other multilateral development banks (MDBs) for ensuring finance in support of infrastructure development, including provision of finance for ongoing projects, which face a sudden scarcity of funds owing to volatile capital flows.
Access to this window should be beyond the normal country limits, which otherwise introduce inflexibility,Chidambaram said.
He added that the aim of such a provision should be to create mechanisms which can increase the flow of infrastructure financing at times when other investments are slowing down.