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$1Billion Loan has been Allotted by the World Bank to Kenya in a Strategy to Boost the East African Nation to finish off a Gaping Appropriation Debt
Posted On 22 May 2020
By Abdul Rahman Bangura–
Photo Credit: The Free Zone Channel
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- World Bank has ratified a $1 billion loan for Kenya, as a road map to enable the East African nation to finish off a gaping allotment depletion and by extension, to grasp the financial traumas from Coronavirus Novel Coronavirus pandemic.
The loan, begun before the health emergency commenced, is the succeeding ever such immediate lending for the budget from the World Bank, after the first was distilled in 2019.
“Its approval is timely, since it will help fill the financing gap generated by the severe, ongoing shock to Kenya’s economy,” the World Bank asserted in a statement.
The budget deficit has swollen to 8.2% of GDP in the financial year to the end of June, from an initial forecast of under 7%, mainly due to reduced tax collection and lost revenue from VAT and income tax cuts.
Finance Minister – Ukur Yatani affirmed the approval was a voice of belief in the government’s handling of the economy.
“The… WB (World Bank) does not provide budget support to countries with a weak macro framework,” he wrote on Twitter.
The bank said that $750 million of the loan, which will come from the International Development Association, will be repaid over a 30-year period, after a grace period of five years, with 1.35% interest.
The second component of $250 million, which will come from the International Bank for Reconstruction and Development, will have a market-based interest rate of about 2%.
“Both amounts are highly concessional,” Felipe Jaramillo, the World Bank’s Kenya Boss told an online news conference.
The loan comes two weeks after the IMF approved $739 million in emergency financing, a move that has supported the shilling currency.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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Coronaviruses (CoV) are a large family of viruses that cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS-CoV) and Severe Acute Respiratory Syndrome (SARS-CoV). A novel coronavirus (nCoV) is a new strain that has not been previously identified in humans.
Coronaviruses are zoonotic, meaning they are transmitted between animals and people. Detailed investigations found that SARS-CoV was transmitted from civet cats to humans and MERS-CoV from dromedary camels to humans. Several known coronaviruses are circulating in animals that have not yet infected humans.
Common signs of infection include respiratory symptoms, fever, cough, shortness of breath and breathing difficulties. In more severe cases, infection can cause pneumonia, severe acute respiratory syndrome, kidney failure and even death.
Standard recommendations to prevent infection spread include regular hand washing, covering mouth and nose when coughing and sneezing, thoroughly cooking meat and eggs. Avoid close contact with anyone showing symptoms of respiratory illness such as coughing and sneezing. Source- WHO
Coronavirus Q&A, World Health Organization
Coronavirus condition overview, World Health Organization
United States, Centers for Disease Control and Prevention
cdc.gov/coronavirus/2019-ncov
Why all these loans? Thanks for da report. Ambundu, Nairobi, Kenya.
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We will contact government of Kenya, about your question and get back to you. Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com
Hope the money goes to the people. We love Kenya. Kenya. Joseph.
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Thanks for reporting. I love new Africa business news. God bless your detail online newspaper. Frankfurt GERMANY. Mahershala
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Report good. Love it. William. Kumasi, Ghana
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