BRICS bank grants SA second R14.5bn Covid-19 loan

The New Development Bank of the BRICS group of nations has approved a second $1bn (R14.5bn) loan to SA's government to fight the Covid-19 pandemic, the bank said on Thursday.

SA's public finances were in bad shape before Covid-19 struck and have deteriorated since, as it has recorded the most coronavirus cases on the continent and imposed a strict lockdown that shuttered much of its economy.

“The loan will support the government of South Africa in its efforts to contain the economic fallout of the pandemic and start economic recovery,” the bank said in a statement.

Last year, the NDB provided SA with a $1bn loan to cushion the socio-economic impact of the pandemic.

The 2021 budget presented in February forecast a record deficit of 14% of gross domestic product in the fiscal year that ended in March.

BRICS member states Brazil, Russia, India, China and SA set up the NDB to mobilise funds for infrastructure and development projects in their own countries and other developing nations.

Reuters