On April 30, 2020, the Board of Directors of the New Development Bank (NDB) approved USD 1 billion Emergency Assistance Program Loan to India. The Program is aimed at supporting the Government of India in its efforts to contain the spread of COVID-19 and reduce human, social and economic losses caused by the coronavirus outbreak.
The Program is the Bank’s second emergency assistance program in response to helping its member countries to fight COVID-19. The Program’s scope of financing includes Healthcare Sector Emergency Response and Strengthening Social Safety Net for expenditures already incurred since January 1, 2020 so far, and the expected public health expenditures for onward transmission containment up to the March of 2021.
The Program will contribute to providing critical healthcare resources and strengthening the social safety net in India. The positive impacts will include improving the resilience of public health sector and health emergency response systems, and facilitating socio-economic recovery in India.
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 member countries could be used to finance direct expenses related to the fight against the COVID-19 outbreak and provide support to governmental measures contributing to economic recovery.
Background Information
The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.
During the Fifth Annual Meeting of the NDB Board of Governors held virtually on April 20, 2020, the Governors of the Bank approved Statement on Response to COVID-19 Outbreak. In the Statement, the Board of Governors stressed that BRICS countries would unite to combat the COVID-19 outbreak.