NDB lends Brazil $1bn loan to mitigate COVID-19 impact

The New Development Bank (NDB) said that it will lend Brazil $1 billion to neutralize the economic impact of the COVID-19 pandemic, bringing total loans to the South American country to $4 billion.

The funds will be given to the Brazilian government’s emergency aid payment program, designed to help millions of low-income people, Xinhua news agency reported.

“NDB financing is an important tool for the Brazilian government to ensure a robust fiscal response to fight the pandemic and allow priority investments to be made, thus supporting the economic recovery,” it said in a statement on Monday.

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in the five countries and other emerging economies and developing countries.

The loan comes as Brazil currently accounts for the world’s second highest number of COVID-19 cases and deaths at 2,118,646 and 80,120, respectively.

Coronavirus-sceptic President Jair Bolsonaro tested positive for the virus for a second time last week.