New Development Bank loan eases repayment terms: Economist
An economist says while South Africa's R17 billion loan from the New Development Bank means more debt on our books, it could afford us easier repayment terms.
The COVID-19 pandemic has battered the country's economy further forcing government to turn to the bank for a loan.
Prior to the approved loan, Finance Minister Tito Mboweni expressed that government spent a considerable amount of time weighing up the pros and cons of such a loan from international lenders while avoiding strict terms and conditions.
READ: Mboweni to deliver COVID-19 budget speech
Economist, Mike Schusler says although hefty the loan could come with relaxed conditions considering that the New Development Bank is formed by BRICS, which we are a member of.
"We are the owner of the New Development Bank. We own about a fifth. We have also put money in there. I think those conditions are going to be less onerous than most others.
"But we are also partaking in the IMF, we have also put money there, and we can take about $4 billion which could help a lot," he says.
