SA eligible for a $4.2 bn COVID-19 relief loan at IMF - Mboweni
Updated | By Steve Bhengu
Government is still mulling over the loan options with international agencies to help cover the budget needed for the country's response to the coronavirus pandemic.
President Cyril Ramaphosa announced a half-a-trillion rand support package that includes a health budget to deal with COVID-19 - and relief for citizens and companies - among others.
He said the money would be raised by reprioritising the current national budget and also sourced from the UIF, global partners and international financial institutions.
Ramaphosa said organisations such as the World Bank, The BRICS Bank and the International Monetary Fund (IMF) had been approached.
But economists have warned this could push us deeper into debt.
READ: Some businesses to resume operations when lockdown level 4 is activated
Briefing the media in Pretoria on Friday, Finance Minister Tito Mboweni said government still had room to manoeuvre, and talks were ongoing.
"The IMF has indicated themselves that South Africa is entitled to apply for up to $4.2 billion in response to this crisis."
"At the World Bank it seems for now we could negotiate between $55 and $60 million - very small, but we will negotiate as much as we can in this regard."
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