COVID-19: India gets $1 billion assistance from BRICS's New Development Bank
The Shanghai-based New Development Bank (NDB) was established by the BRICS (Brazil, Russia, India, China, South Africa) countries in 2014 and is headed by veteran Indian banker K V Kamath.
The New Development Bank of the BRICS countries has provided $1 billion (about Rs 7,400 crore) emergency assistance loan to India to help it contain the spread of COVID-19 and reduce human, social and economic losses caused by the coronavirus pandemic.
The NDB Board of Directors approved the 'Emergency Assistance Program Loan' based on an urgent request from the government of India, the Bank said.
"The NDB is fully committed to supporting its member countries in the time of calamity. Emergency Assistance Program Loan to India was approved in quick response to the urgent request and immediate financing needs of the Government of India in fighting COVID-19," Xian Zhu, Vice President and Chief Operations Officer of the bank said in a statement issued on Tuesday.
"The Program envisages (i) preventing, detecting, and responding to the threat posed by COVID-19; (ii) funding critical healthcare expenditure that will enhance healthcare capacity in India and strengthen national health systems preparedness; and (iii) providing immediate economic assistance to the vulnerable and affected groups, thus facilitating economic and social recovery," said the Bank.
On Tuesday, Prime Minister Narendra Modi announced massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore.
The Shanghai-based New Development Bank (NDB) was established by the BRICS (Brazil, Russia, India, China, South Africa) countries in 2014 and is headed by veteran Indian banker K V Kamath.The purpose of the bank is to mobilise resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies and developing nations, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.
In its Statement on Response to COVID-19 outbreak, the NDB Board of Governors welcomed the establishment of an Emergency Assistance Facility to meet the emergency needs of the member countries of the bank.
Emergency loans to the NDB member countries could be used to finance direct expenses related to the fight against COVID-19 outbreak and provide support to governmental measures contributing to economic recovery, it said.
The death toll due to COVID-19 rose to 2,415 and the number of cases climbed to 74,281 in India on Wednesday, according to the Union Health Ministry.
Globally, the number of cases linked to the disease has crossed 42.61 lakh and the death toll has topped 2.91 lakh.