All loans stopped for AP?

Posted : August 12, 2013 at 10:47 am IST by ManaTelugu

The bifurcation announcement for Andhra Pradesh is proving to be a death knell for the state and its finances. As if the current agitations, resignations and lack of governance are not enough, sources say that the World Bank and other institutions are holding back the loans which were supposed to be given for AP.

This reportedly includes close to Rs. 15000 crores which were earmarked for various welfare programs that will benefit the lower castes and monitories in the state including building new government schools. Due to this stoppage, a crunch situation has developed across many departments.
This has reportedly come as a sudden shocker for AP departments which have already been struggling and also shows a lack of clarity by Congress government as to how it needs to take bifurcation forward. All in all, the entire situation of Andhra Pradesh has become a mess due to the political situation.