Botswana: Development Bank Lends Nation U.S. $1.5 Billion

4 June 2009
allAfrica.com

Cape Town — In a decision reflecting the consequences of the global economic crisis for Africa, the African Development Bank has granted Botswana the largest-ever assistance package of its kind to help it offset the impact of falling diamond prices.

The bank announced a U.S. $1.5 billion loan to Botswana on Wednesday. It said the purpose of the loan was to "fill part of the gap in the government's 2009/2010 budget deficit... caused by falling commodity prices, particularly diamonds."

Bank president Donald Kaberuka said Botswana's situation "illustrates the impact that the financial crisis is having on even the best managed economies in Africa."

The bank said in its statement announcing the loan that it "falls within the framework of the recently-approved strategy... to provide support to member countries affected by the financial crisis..." It added it was the first time in 17 years that Botswana had asked for this kind of help.

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