(Ecofin Agency) - The World Bank approves a $1 billion loan to support Kenya’s budget deficit, we learned. Talks for this disbursement was made in January 2020.
The resources come at the right time when the country, like many others, needs money to curb the propagation of coronavirus and control its impacts. The World Bank and the Kenyan government have not provided details on the terms of this loan.
Kenya has already received $750 million from the International Monetary Fund, as part of the fight against the pandemic. In addition to two additional deals of $150 million signed earlier this year, the Bretton Woods Institutions have provided a total of $1.9 billion to Kenya. This represents nearly 80% of the government's foreign exchange needs throughout 2020 and allows the country to start its fiscal year 2020-21 without having to consider borrowing foreign exchange on the international capital market.
The country has prepared a post-covid-19 recovery plan valued at $503 million.