[ad_1]
Minister Mboweni said the Reserve Bank of South Africa will invest an additional R300 billion in the economy during the period of the COVID-19 crisis.
Finance Minister Tito Mboweni. Image: @ TreasurySA / Twitter
JOHANNESBURG – Finance Minister Tito Mboweni said the combined fiscal and monetary policy package to keep the economy running amid the COVID-19 crisis now amounts to R800 billion.
This week President Cyril Ramaphosa announced a stimulus package of R500 billion, but Mboweni said that the Reserve Bank of South Africa will invest an additional R300 billion in the economy during this period.
LOOK: Ramaphosa announces R500 billion economic stimulus package
The finance minister was briefing the media on the details of the package on Friday.
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.
However, the finance minister also confirmed that South Africa has been in talks with the International Monetary Fund (IMF), the World Bank and the New Development Bank, seeking loan options to cope with the impact of the coronavirus.
“The fact is that South Africa is a member of the IMF and the World Bank. We pay our subscriptions on a regular basis and therefore we have the right to approach those institutions if we need to. “
As the country goes through the crisis, Mboweni emphasized that private companies have come to the party, offering various financing vehicles to cushion companies and consumers.
[ad_2]
