The New Development Bank (NDB) is waiting for the BRICS countries to outline an economic recovery framework as it plans to disburse $6 billion in aid packages to help member states rebound from the disruption caused by the coronavirus disease pandemic, the bank's vice president and chief financial officer Leslie Maasdorp told Sputnik
MOSCOW (Pakistan Point News / Sputnik - 30th July, 2020) The New Development Bank (NDB) is waiting for the BRICS countries to outline an economic recovery framework as it plans to disburse $6 billion in aid packages to help member states rebound from the disruption caused by the coronavirus disease pandemic, the bank's vice president and chief financial officer Leslie Maasdorp told Sputnik.
In March 2020, the NDB approved a $10 billion Emergency Assistance Program designed to support BRICS member countries with their response to the COVID-19 pandemic.
"The first part of this assistance is to support the efforts of BRICS governments to strengthen the public health infrastructure and to ensure that hospitals have sufficient resources and all the necessary equipment to fight the pandemic, including adequate hospital beds, protective equipment for frontline health personnel, ventilators, etc. The second component will be to support initiatives to assist with the economic recovery efforts and reduce the massive negative impacts on the economy," Maasdorp said.
The bank has so far allocated a combined $4 billion in financial aid to China, India, Brazil, and South Africa, the vice president said.
"These loans for COVID-19 response are the biggest: $1 billion to China, to India, to South Africa, to Brazil. These are the largest loans the bank has approved to date," Maasdorp said.
Russia has not sought any assistance from the NDB to help it fight the pandemic so far, and the bank is waiting for BRICS member states to decide on what they wish to do with the remaining $6 billion in aid that has been earmarked to help the post-pandemic economic recovery.
"We are focused on helping the governments to reverse the economic decline, to help our countries save jobs and protect industries that have gone into decline as a result of COVID-19. We haven't yet allocated this remaining $6 billion, but each of the member countries is working at what kind of targeted economic interventions could be designed for which they can apply for this additional funding," he said.
It remains for BRICS member states to file their applications with the NDB in order to access the available funds, the vice president added.
"The member countries approach us based on their fiscal situation. These are obviously unanticipated expenditures to fight the global pandemic. Countries base this on need. In the second phase, China might not require assistance for the economic response or other areas. This is all dependent on actual governments because these loans have a government guarantee, sovereign guarantee we call it," Maasdorp said.
The NDB was created by Brazil, Russia, India, China, and South Africa to create the infrastructure for sustainable development in emerging economies and developing countries. Any UN member state can become a member of the NDB, although the cumulative share of BRICS nations can never be less than 55 percent of the voting potential.