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Tuesday, May 26, 1998 Published at 20:28 GMT 21:28 UK
World Bank delays big loans to India ![]() The loans postponement follows global protests at India's nuclear testing The World Bank has delayed a decision on whether to approve more than $860m in loans to India, following the country's two series of nuclear tests earlier this month. The bank says the decision was taken in response to requests from several of the 24 executive directors and board members who wanted the issue postponed.
Officials from the US Treasury say their representative at the meeting had been instructed to oppose the package and the European Union had also pledged to delay consideration of the loans in response to India's nuclear tests. The US holds around 17% of the World Bank votes.
They say the US can be expected to maintain the pressure on the World Bank to ensure that the loans remain stalled, at least until India pledges to sign the comprehensive Nuclear Test Ban Treaty. The loans were intended to support four major projects including a renewable energy programme and the development of a national electricity grid for India. The World Bank says no new date for consideration of the loans has yet been fixed.
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