New Development Bank approves $1 billion COVID-19 loan to South Africa

The New Development Bank has approved a loan of one billion dollars to South Africa as the latter battles with the COVID-19 pandemic, international media reported. South Africa was already in recession before the coronavirus pandemic hit and experts have predicted an output loss of seven per cent for the year 2020. The New Development Bank is established by the BRICS group which comprises five emerging economies. 

Emergency program loan

According to reports, the emergency loan sanctioned by BRICS is being provided on the request and need of the African nation. This comes as the country's Finance minister Tito Mboweni is all set to unveil a new emergency budget with major alteration in spending and revenue forecast on June 24. BRICS is an acronym used for a group of five countries- 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,” the South African treasury said in a statement.

South Africa which imposed a tough lockdown earlier in March has reported 87,715 cases and 1,831 fatalities till now, the latest tally from John Hopkins University stated. South Africa has between a third and a quarter of all coronavirus cases on the African continent — more than 80,000 — and half of those cases have been confirmed over the past two weeks, President Cyril Ramaphosa said in a national address.

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But he announced further lockdown easing under pressure from business leaders and informal workers, many of them women, who have said the 100 days of restrictions have inflicted enormous financial pain. According to new rules, restaurants could now be able to offer sit-down meals. Hotels, cinemas and hairdressers could operate and non-contact sports like golf and tennis could resume. Meanwhile, he also said that crime against women has increased many folds since the outbreak in the nation. 

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