‘China must cooperate with Sri Lanka on debt restructure’
About United States Agency for International Development (USAID):
- The United States Agency for International Development is an independent agency of the U.S. federal government.
- Its primary responsibility is to administer foreign aid and development assistance.
- USAID works in over 100 countries to Promote Global Health, Support Global Stability, Provide Humanitarian Assistance, Catalyse Innovation and Partnership, Empower Women and Girls and to promote American Interests.
- USAID has partnered with India to tackle various issues such as food insecurity, fuel the Green Revolution; eradicate polio and strengthen health systems; promote biodiversity and preserve India’s food crops; develop industry and infrastructure; establish leading research universities; develop its economy; and reduce poverty.
About Sovereign Bond:
- A sovereign bond is a debt instrument issued by the government which can be denominated in both foreign and domestic currency.
- They promise to pay the bearer a certain amount of interest for a stipulated number of years along with the face value on maturity.
- Generally sovereign bonds have a lower yield compared to bonds given by corporates; however, they are more desirable to investors due to their higher trustworthiness.
About International Monetary Fund (IMF):
- International Monetary Fund (IMF) is an international organisation founded on 27 December 1945 at the Bretton Woods Conference.
- The IMF currently has a strength of 190 member countries.
- The idea behind the formation of the IMF was propounded by Harry Dexter White and John Maynard Keynes.
How IMF functions
- The IMF maintains a collective fund which mainly comes from the money that countries pay as their capital subscription (quotas) when they become members.
- Each member of the IMF is assigned a quota, based broadly on its relative position in the world economy and the degree of its financial security.
- Countries can then borrow from this pool when they fall into the Balance of Payment Crisis.
Source : THE HINDU