RTTNews - The African Development Bank Group agreed to lend $1.5 billion for Botswana to help the country to address the financial crisis.
The bank said in a statement that the Budget Support Loan is designed to fill part of the gap in the government's 2009/2010 budget deficit, currently estimated at 13.5% of GDP. The deficit was 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, the bank's president Donald Kaberuka said.
The crisis which is affecting African countries through different channels is increasing demands for support from the international financial institutions including the AfDB, the bank said in a statement.
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