SA confirms receipt of $1 billion Covid-19 relief loan from NDB – News24

SA confirms receipt of $1 billion Covid-19 relief loan from NDB – News24
The $1 billion loan from the New Development bank was received on 20 July.

The $1 billion loan from the New Development bank was received on 20 July.

  • SA has received the $1 billion funding from the New Development Bank.
  • The bulk of the Covid-19 relief funding is expected to be received by the end of the week.
  • The R5 billion loan from African Development Bank is expected in August.

South Africa received the $1 billion emergency loan that it
secured from the New Development Bank to assist in fighting the coronavirus
pandemic on July 20, according to National Treasury.

The disbursement from the lender, which serves the BRICS
nations – Brazil, Russia, India, China and South Africa – means the country
will get the bulk of funds borrowed from international finance institutions by
the end of this week. It is due to receive the $4.3 billion facility granted by
the International Monetary Fund on Wednesday.

The R5 billion approved by the continent’s biggest
multilateral lender, the African Development Bank, is expected in August, Treasury
said in an emailed response to questions.

The AfDB money will be paid in rands and the dollar-denominated
loans from the NDB and IMF will be converted to rands by the Reserve Bank to
finance the government’s local-currency commitments, Treasury said. The central
bank is the government’s banker. The borrowings will increase the government’s
foreign cash balances and debt, Treasury said.

While the central bank confirmed that it will receive the
inflows on behalf of the government, it wouldn’t say how the conversions would
be handled. “The South African Reserve Bank does not preannounce its
operations in the foreign-exchange market,” it said.

Africa’s most-industrialised economy is counting on $7
billion from multilateral lenders and development finance institutions to
support its response to the pandemic. The country will seek as much as $2
billion from the World Bank, according to Treasury Director-General Dondo
Mogajane.

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