The African Development Bank has approved a R5 billion loan to South Africa to help fight the virus and mitigate its economic fallout of the pandemic.
The loan which is the Development Bank’s first budget support to the country falls under its $10 billion coronavirus response budget and was prepared following a request from the government of South Africa. The loan is the second from a multilateral lender after the country received a $1 billion emergency facility from the New Development Bank last month to help offset the damage caused by the virus and finance the government’s 500 billion-rand stimulus package. South Africa is counting on $7 billion from multilateral lenders and development finance institutions to support its response to the pandemic. The International Monetary Fund will consider South Africa’s request for a $4.2 billion loan to support its fight against Covid-19 on July 27 and the country is in talks with the World Bank for up to $2 billion.
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