‘Brics’ bank lends Brazil $1 billion to soften COVID-19 economic blow

FILE PHOTO: People walk at a popular shopping street amid the outbreak of the coronavirus disease (COVID-19), in Sao Paulo, Brazil

The New Development Bank of the “BRICS” group of leading emerging economies will lend Brazil $1 billion to help combat the economic damage from the COVID-19 crisis, the institution said on Monday.

The funds will be allocated to the federal government’s emergency aid payment program, which the NDB estimates could benefit 5 million informal workers, low-income families and unemployed people.

“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,” the NDB said in a statement.

According to the bank, set up by Brazil, Russia, India, China and South Africa, this will be on top of financing from other multilateral banks and international development agencies such as The World Bank and Inter-American Development Bank, bringing total loans to Brazil to $4 billion.

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