ADB confesses to lack of loan efficacy

The Asian Development Bank has admitted that some of its initiatives over the past years have not produced optimum results. In a study released by the organization, officials conceded that USD5.4 billion in loans approved from 2001 to 2004 have been “less than efficient” and that the “effectiveness” of these loans has diminished. The report also indicated that different demands from donors and recipients have led to a decrease in loans allocated to priority areas such as health, microfinance and agriculture. Misgivings about the ADB forced Britain to pull out funds, citing “lack of significant progress on the reform agenda.”

Source: ADB admits to problems over lending to poor nations (AFP)