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The country has approached the International Monetary Fund (IMF), the World Bank and the African Development Bank to obtain funds to contribute to its R500 billion rescue package.
Finance Minister Tito Mboweni. Image: @ TreasurySA / Twitter
JOHANNESBURG – With South Africa looking to open up parts of the economy next week, the government is looking for R95 billion of multilateral lenders to help fight the COVID-19 pandemic.
The country has approached the International Monetary Fund (IMF), the World Bank and the African Development Bank to obtain funds to contribute to its R500 billion rescue package.
The stimulus is intended to cushion the impact of the coronavirus on businesses and poor households.
Finance Minister Tito Mboweni earlier this week said South Africa is entitled to a maximum of $ 65 billion in IMF, World Bank and Brics bank funds.
Reuters reports that the emergency funds offered will not require an IMF structural adjustment program.
Mboweni played down concerns that the money would come with onerous conditions.
SARB WILL INVEST R300 BLN TO BOOST THE ECONOMY SA
Mboweni said that with the additional R300 billion from the Reserve Bank of South Africa, the combined fiscal and monetary policy package to keep the economy running amid the COVID-19 crisis now amounts to R800 billion.
He said the R800 billion will bring additional life to the country’s financial system, keeping it greased as we fight the impact of the COVID-19 pandemic.
“It does not mean that these are funds in the hands of the fiscus. But this will be financed in an economic system.”
The government has had to raise funds through budget reallocations and re-prioritizations.
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