New Development Bank approves South Africa $1billion pandemic loan

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New Development Bank approves South Africa $1billion pandemic loan

The Shanghai, China-based New Development Bank established by the BRICS group of five emerging nations such as Brazil, Russia, India, China and South Africa, had approved a $1 billion in emergency pandemic debt to South Africa aimed at cushioning up the socio-economic fallouts of the global-scale pandemic outbreak, the South Africa’s National Treasury had told in a statement on Saturday.

In point of fact, latest relief bill from the New Development Bank, formerly known as the BRICS Development Bank, came forth weeks after the US-based so-called “big three” credit rating agencies such as S&P Global Ratings, Fitch and Moody’s had downgraded S.

Africa’s sovereign credit rating into a junk territory citing a sweeping drop in demands due to the pandemic outbreak, while the recent emergency relief bill in debts came forth as a shimmering ray of hope for the fiscally embattled $358 billion economy of S.

Africa by nominal GDP (Gross Domestic Product). As a matter of fact, in the face of a number of blistering issues including a huge-scale Government-level mishap alongside a chronic power shortage, the African continent’s most industrialized nation with a higher human development index (70.3) had been facing off a recession before the onset of the pandemic outbreak, while the pandemic-led forced closure measures had muffled the economy’s momentum further.

S. Africa to unveil emergency budget in context of pandemic outbreak on Wednesday

Meanwhile, as the S. African Finance Minister Tito Mboweni was expected to roll out an emergency budget with a raft of major changes in spending alongside revenue forecasts as early as by next Wednesday, Treasury Department of the South African Government of President Cyril Ramaphosa who was looking to relax the lockdown measures next week following two months of stiffer restrictions, said in a statement, “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.