NDB Board of Directors approved USD 1 billion equivalent COVID-19 Emergency Program Loan to Russia for supporting frontline health workers
On March 25, 2021, the Board of Directors of the New Development Bank (NDB) approved a COVID-19 Emergency Program Loan of up to USD 1 billion equivalent to the Russian Federation for financing its healthcare response to the pandemic (the Loan). The Loan will be used for supporting frontline health workers, including doctors, nurses and junior medical staff, who provide medical care for the diagnosis and treatment of COVID-19.
The Loan will provide financial resources to address one of the most critical needs in Russia’s healthcare response to the COVID-19 outbreak and improve the capacity and resilience of the country’s public health sector. The Loan will support incentive payments, including previously made, to healthcare personnel directly engaged in response to the pandemic, which represents part of a larger governmental plan to fight COVID-19.
The Loan will be provided by the NDB within Fast-Track COVID-19 Emergency Assistance Response Facility of USD 10 billion and in accordance with the Policy on Fast-track Emergency Response to COVID-19. The Loan is aligned with the NDB’s General Strategy: 2017 – 2021, which, in addition to the Bank’s Articles of Agreement, provides an effective framework within which the NDB can provide rapid support to its member countries to combat the COVID-19 pandemic and its adverse impacts on social and economic development.
The NDB established the Emergency Assistance Facility in April 2020, to provide up to USD 10 billion in crisis-related assistance to its member countries, including USD 5 billion for financing healthcare and social safety-related expenditures, as well as USD 5 billion for supporting economic recovery efforts. In total, the NDB Board of Directors so far has approved eight COVID-19 related emergency assistance programs with a total amount of around USD 8 billion.
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.