World Bank has said that it is considering to raise the borrowing limit of individual countries, an issue which was pressed by India at the G-20 meeting in London to increase flow of funds to developing countries from the multilateral lending agency.
"Discussions are underway (for raising single borrower limit) but a decision has not been made," a World Bank spokesperson said.
At present, a country can borrow up to $15.5 billion as per the SBL (single borrower limit) fixed by the international bank.
Raising the issue at the G-20 London meeting, India urged the Bank to raise SBL to fill the funding gap created in developing economies by the withdrawal of private capital flows from rich nations.
The increase in borrower limit, India argued, was necessary to help the developing countries pump in more funds in infrastructure sector and fight the impact of the global financial meltdown.
The SBL issue, according to the bank, is addressed by the board of directors as part of the annual income review exercise.
India, official sources said, also underlined the need for expeditious clearance of projects by the Bank to increase flow of funds into the infrastructure sector projects.
Refinancing of bank lending for infrastructure projects is another way of lubricating investment in infrastructure, sources said, adding "a critical issue here is the need to avoid prolonged project approval methods which otherwise delays financing."
The bank can also play a critical role in encouraging the developing countries to undertake countercyclical measures to boost economic growth.
Prime Minister Manmohan Singh, earlier in the month, had called for providing additional funding to developing nations as a way to maintain demand in a troubled global economy.
"We must ensure that countries hurt by the massive withdrawal of private capital that has taken place, which is unlikely to be reversed in 2010, are able to rely upon an increased flow of resources from the international financial institutions," he had said ahead of the G-20 London Summit.
Singh was of the view that multilateral development banks can also play a key role in maintaining flow of resources to developing countries over the next two years.
