New Development Bank Approves US$1 Billion Loan to South Africa

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The Board of Directors at the New Development Bank (NDB) approved a US$ 1 Billion Emergency Assistance Program Loan to South Africa to help the government in dealing with the Covid-19 health crisis and mitigate some of the losses.

NDB, formerly known as the BRICS Development Bank, was established by Brazil, Russia, India, China and South Africa.

“The COVID-19 Emergency Program Loan to South Africa will be provided in response to the
urgent request and immediate financing needs of the South African Government. NDB’s
assistance will address urgent health needs in South Africa to overcome the COVID-19 pandemic and help mitigate socio-economic impacts on the most vulnerable populations,” said Mr. Xian Zhu, NDB Vice President and Chief Operations Officer.

The National Treasury says that the loan will be used to improve the public healthcare sector by acquiring the necessary resources to strengthen South Africa’s response to the health crisis. They further said that the funds will also be allocated to assist with socio-economic recovery.

Final details of the loan will be made available once the Treasury and NDB establish the technical and administrative requirements.