New Development Bank provides SA with $1bn Covid-19 loan
Cape Town - The New Development Bank
established by the Brics group of emerging nations has approved
a $1 billion (around R17.2 billion) Covid-19 emergency loan to South Africa to help
reduce the socio-economic impacts of the pandemic, the National
Treasury said on Saturday.
South Africa was already in recession before the pandemic
wreaked further havoc in Africa's most industrialised economy.
"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," the Treasury
said in a statement.
Finance minister Tito Mboweni is expected to unveil an
emergency budget with major changes to spending and revenue
forecasts in parliament on Wednesday.
The government this week further relaxed two months of tough
restrictions as it looks to support the economy.
After detecting its first case in March, infections and
deaths have spread across South Africa. As of Saturday the country
had 92 681 confirmed Covid-19 cases and 1 877 deaths.
Brazil, Russia, India, China and South Africa are members of
the New Development Bank.