The real IMF show is still coming to town. Updates fatalities in seventh paragraph. Many South Africans have responded to the news of the $4.3-billion (R73 billion) loan from the International Monetary Fund (IMF) with profound concern that this money will be looted by and through the ANC. Indonesia Seen on Hold as Price Pressures Brew: Decision Gui... Money will be disbursed to government account on Wednesday, Loan repayable in eight equal installments at 1.1% interest. The Economic Freedom Fighters (EFF) has rejected the R70 billion International Monetary Fund (IMF) loan to South Africa. I have no doubt that the IMF had no intention of fuelling racial discord in South Africa. The RET crowd may see an IMF loan as an affront to South Africa’s sovereignty and capitulation for the forces of global WMC, but it was the mismanagement of Africa’s most advanced economy under Jacob Zuma that has brought Pretoria closer to a standby arrangement. The International Monetary Fund (IMF) and the World Bank are long-standing lenders to Africa. It is payable over 3.25 to five years at 1.1% interest. The IMF requires that South Africa repay the funds to the IMF over 20 months beginning 40 months after the loan is disbursed. Consequently, the funds will be … The IMF loan does not impose any conditions over and above what is in South African law on how the funds can be used. A lockdown aimed at curbing the spread is devastating the economy, with the government expecting it to contract 7.2% this year. “Finance Minister Tito Mboweni’s debt stabilisation plan, outlined in his emergency Budget, was met with scepticism by ratings agencies Moody’s and Fitch, as well as domestic economists, with many pointing out that stabilising debt at 87% of GDP with shrinking revenues and no real cost containment plan is simply not credible. Political parties have reacted differently to the International Monetary Fund’s (IMF) multi-billion rand loan to South Africa. IMF Grants $4.3 Billion Coronavirus Loan to South Africa The loan raises concerns among South Africans that it could encourage government corruption The Imizamo Yethu township area of Hout Bay… There are many great benefits to being a Maverick Insider. The International Monetary Fund approved $4.3 billion in emergency funding for South Africa, the largest emergency disbursement for any country yet to … “Obviously, we would like the government to use it for appropriate purposes, including in the direct fight against Covid-19 in terms of the health interventions as well as other economic measures to reduce the impact of Covid-19 on people’s livelihoods and to preserve jobs.”. The IMF loan does not impose any conditions over and above what is in South African law on how the funds can be used. The IMF is confident that South Africa can sort itself out The International Monetary Fund is of the opininion that South Africa is perfectly capable of sorting out its own problems without a loan. JOHANNESBURG - The International Monetary Fund (IMF) has approved South Africa's loan request of US$4.3 billion to address the socio-economic impact of COVID-19. South Africa will need to adhere to all IMF conditions to make use of the funds. BM, Please sign in or register to enable this feature. South Africa Looks Toward Inclusive Recovery to Stabilize Debt, Boost Growth. Breaking from 26 years of reticence, South Africa has decided to apply for a loan from the International Monetary Fund (IMF), the mashonisa (lender) of international finance. There will be some minor strings attached which will be unveiled soon. The Conversation Africa’s editor, Caroline Southey, asked Danny Bradlow to shed some light on what South Africans should expect. Pointedly, in its statement, the IMF said: “Once the pandemic is behind, there is a pressing need to ensure debt sustainability and implement structural reforms to support the recovery and achieve sustainable and inclusive growth.”. It may be a stark reminder that not all is well in the country as the loan comes at a time when there are allegations of corruption and theft of the COVID-19 funds. The International Monetary Fund (IMF) has approved a R70 billion (US$4.3 billion) loan for South Africa to help the country manage the immediate consequences of the fallout from COVID-19. The Executive Board of the IMF has approved the country’s request for a R70 billion loan to help bolster its response to the economic impact of the COVID-19 pandemic.. “The government is entirely free to use it as it sees fit,” Mlachila said. The International Monetary Fund (IMF) has approved a R70bn ($4.3bn) loan for South Africa to help the country manage the immediate consequences of the fallout from Covid-19. “South Africa has crossed the Rubicon with the approval of the RFI and from the outcry on Twitter and elsewhere there seems to be a realisation of this, yet much is misinformed – there are no post disbursal conditionalities and no consequences for breaking commitments in the Letter of Intent,” Peter Attard Montalto, head of capital markets research at Intellidex, told Business Maverick. All countries receiving emergency assistance from the IMF have agreed to transparently report spending, the lender said in a letter to the opposition Democratic Alliance. However, South Africans have not been informed about the terms and conditions of this loan at all. With more than 450,000 confirmed Covid-19 cases and 7,257 fatalities, South Africa is the worst-hit country on the continent. Click here to see other benefits and to sign-up to our reader community supporting quality, independent journalism. Even though the institutions felt the continent is borrowing too much recently, the coronavirus outbreak has cajoled the lenders into helping more. The IMF’s loan is part of the government’s R500-billion social and economic response to Covid-19. Yet on July 27th South Africa said it had agreed to a $4.3bn loan from the IMF. But it was an RFI loan, without much explicitly formulated conditions, that was needed to muddle the IMF project through the alliance between the ANC, labour federation Cosatu and South … Many people are saying it’s the first of perhaps, many. Nine government agencies, including the National Prosecuting Authority, police and national tax agency, are investigating allegations of wrongdoing. The IMF loan does not impose any conditions over and above what is in South African law on how the funds can be used. The money comes after some senior officials in the ruling African National Congress and its alliance partners initially rejected suggestions that the government seek help from multilateral lenders. The $4.3bn loan the IMF is extending to South Africa does not come with typically tough conditions such as cutting state costs to the bone. The whole IMF loan, the R71-billion that South Africa is now signing up for. The facility is the country’s maximum entitlement under its special drawing rights with the IMF. No wonder the Covid Relief fund only benefited those who are helping him destroy the ANC in the form of monthly grants and PPE tenders. What’s your interpretation of it? They are pegged against the “Libor”, the London Interbank Offered Rate , a reference lending rate widely used in international banking. 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