RIO DE JANEIRO - The New Development Bank (NDB) will lend Brazil $1 billion to neutralize the economic impact of the COVID-19 pandemic, bringing total loans to Brazil to $4 billion, the institution said on Monday.

The funds will be given to the Brazilian government's emergency aid payment program, designed to help millions of low-income people.

"NDB financing is an important tool for the Brazilian government to ensure a robust fiscal response to fight the pandemic and allow priority investments to be made, thus supporting the economic recovery," the NDB said in a statement.

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in the five countries and other emerging economies and developing countries.