Reported Chinese blocking an Indian loan a misunderstanding: ADB

The Asian Development Bank Wednesday said a report that its lending programme for India had been blocked by China was a "misunderstanding." The banks president, Haruhiko Kuroda, made the comments following reports that China deferred approval of the ADBs three-year partnership strategy for India.
The Financial Times reported last month that Beijing was unhappy with Indias plan to use some of the funding on projects in the disputed north-eastern region of Arunachal Pradesh. "People familiar with the plan said the projects were for flood management, water supply and sanitation. China and India fought a war in 1962 over disputed territory. China declared victory and then pulled back its troops," the paper said.
"It was a misunderstanding," Kuroda told reporters during a briefing ahead of next months annual general meeting of the ADB on the Indonesian island of Bali.
"We had a scheduled meeting of the (ADB) board for March 27 to discuss financial assistance for the next three to five years with the country ... in this case India ... but it was deferred by a board member," Kuroda said without naming China specifically or going into details. India was the biggest recipient of ADB lending last year, with almost 2.9 billion dollars.
The United States has often been critical over what it sees as the bank favouring lending to China and India, considered middle-income countries. The United States is the second-biggest donor to the 67-member ADB after Japan, and the two countries are jointly the largest shareholders.
"Chinas reluctance to approve the country plan for India comes at a time when Beijing is lobbying hard for a larger role in the International Monetary Fund and other international organisations," the Financial Times said. Kuroda said the assistance programme for India would be discussed at "a later date."
China is one of the ADBs 48 members from the Asia-Pacific region, with 19 coming from elsewhere around the world. The organisation will begin a four-day annual meeting in Madrid on Saturday. The Asian Development Fund, funded by ADBs donor member countries, offers loans at very low interest rates and grants that help reduce poverty in its poorest borrowing countries.