Press Release from 2020-04-24 / Group, KfW Development Bank
No social distancing: support for developing countries & emerging economies to mitigate economic impact of coronavirus pandemic
- Immediate measures for fighting the pandemic
- Strengthening health care systems
- Stabilising financial systems and private companies
KfW Development Bank is supporting the Federal Ministry for Economic Cooperation and Development (BMZ) as it launches the emergency coronavirus programme for developing countries and emerging economies. First and foremost, the programme involves immediate aid measures such as procuring tests and laboratory equipment, followed by longer-term pandemic prevention through developing laboratory infrastructure, financing of training measures, information campaigns, national pandemic response plans and measures such as maintaining the water supply.
Secondly, additional funds for loans to micro, small and medium-sized enterprises will be provided, and interest rates will be lowered and repayments deferred for severely affected industries. In addition, default guarantees and support funds will contribute to stabilising the financial sectors in the partner countries. KfW will apply expedited procedures to many ongoing projects in order to mitigate the economic impact in the countries.
Thirdly, crisis response windows will be added to existing programmes for the partner countries in order to contribute to socio-economic stabilisation of the affected developing countries and emerging economies.
“The poorer countries need support, especially now. Otherwise all the development progress made over the past years will be lost. So it is the right decision for Germany and Europe to put together extensive aid packages. Despite all of the uncertainties and challenges Germany is currently facing, we should not turn our backs on the world. It was appropriate and reasonable to close borders to contain the virus. But we cannot allow ourselves to erect borders in our minds and blind ourselves to other countries and continents,” said Prof. Dr Joachim Nagel, Member of the Executive Board of KfW Group.