He explained that the bank is aware of Botswana's energy deficit, lower exports receipts and SACU revenues as a result of the global recession. Kaberuka was speaking at the signing ceremony of $1.5 billion (P10.1 billion) Economic Diversification and Budget Support loan for Botswana availed by the AfDB. The loan was approved by the AfDB board in June to help fill the gap in the government's huge budget deficit of up to 13.5 percent of GDP for 2009-2010 financial year. The deficit was caused by falling commodity prices, particularly diamonds.
Kaberuka is in the country with an AfDB team for a two-day official visit to strengthen cooperation, especially in relation to the global financial crisis. "The bank is pleased to respond and we hope we responded swiftly to one of the best performing member countries," he said. He added that the loan falls within the framework of the recently approved strategy by the bank to provide support to member countries affected by the financial crisis. It is the largest such facility ever granted by the AfDB and the first borrowing by Botswana in 17 years from the bank.
