Posted by: africanpressorganization | 4 June 2009

AfDB Approves US$ 1.5 Billion Budget Support for Botswana to help Country cope with the Financial Crisis

 

 


 

 

AfDB Approves US$ 1.5 Billion Budget Support for Botswana to help Country cope with the Financial Crisis

 

TUNIS, Tunisia, June 4, 2009/African Press Organization (APO)/ — The African Development Bank on Tuesday in Tunis, approved a loan of 1.5 billion US$ for Botswana, one of the best managed economies in Africa.  The loan falls within the framework of the recently approved strategy by the Bank to provide support to member countries affected by the financial crisis and is the largest such facility ever granted by the Bank.  The Budget Support Loan is designed to fill part of the gap in the government’s 2009/10 budget deficit currently estimated at 13.5% of GDP, caused by falling commodity prices, particularly diamonds.

 

“The case of Botswana illustrates the impact that the financial crisis is having on even the best managed economies in Africa.  I am delighted that the Bank has been able to respond quickly and flexibly in this “unique case” within the Bank’s framework of response to the financial crisis,” said Dr. Kaberuka, the President of the Bank.

 

The crisis which is affecting African countries through different channels is increasing demand for support from international financial institutions, including the Bank.

 

This is the first such borrowing by Botswana in 17 years, from the Bank.  Previously, Botswana had in fact several times contributed to the replenishment of the African Development Fund, the soft loan window of the Bank Group.

 

SOURCE 

African Development Bank (AfDB)


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