New Development Bank approves R17bn loan to assist SA with Covid-19

New Development Bank approves R17bn loan to assist SA with Covid-19

- The New Development Bank established by the BRICS group has approved a R17-billion loan for South Africa

- The money will be used to reduce the impact of Covid-19 on the economy

- South Africa's economy was in poor shape before the pandemic and the lockdown has wreaked havoc

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The New Development Bank established by the BRICS group has given the nod to a $1-billion (R17-billion) loan for South Africa.

The loan has been granted to help reduce the socio-economic impact of Covid-19 according to the National Treasury.

South Africa's economy was not in great shape before the pandemic with a recession and rating downgrades. The lockdown wreaked havoc on the struggling 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.

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Finance minister Tito Mboweni is expected to release an emergency budget with sweeping changes and updated revenue forecasts in Parliament on Wednesday.

Brazil, Russia, India, China and South Africa are members of the New Development Bank.

In other news, Briefly.co.za has reported that President Cyril Ramaphosa said the economic recovery must be "state-led".

In a virtual sitting, Ramaphosa was reacting to a question about what form South Africa's economic recovery would take in the National Assembly.

News24 reports that economists have predicted that the economic shock of the pandemic will cause South Africa's GDP to shrink by between 5% and 10%, worsening the already dire

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Source: Briefly.co.za

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