An increase in virus-related spending, including a 500 billion-rand ($30.5 billion) stimulus package, is set to add pressure to an already strained fiscus. With more than 450,000 confirmed Covid-19 cases and 7,257 fatalities, South Africa is the worst-hit country on the continent. This, folks, is just the warm-up act. 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. Nevertheless, reports that South Africa has been negotiating a letter of intent with the IMF suggests that at least part of the financing will be linked to tougher IMF conditionalities. Ghana is blessed with abundance of natural resources. JOHANNESBURG – National Treasury on Tuesday said that the multi-billion rand loan from the International Monetary Fund (IMF) had not jeopardised South Africa’s sovereignty. Yet on July 27th South Africa said it had agreed to a $4.3bn loan from the IMF. This, folks, is just the warm-up act. They are pegged against the “Libor”, the London Interbank Offered Rate , a reference lending rate widely used in international banking. I have no doubt that the IMF had no intention of fuelling racial discord in South Africa. 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 International Monetary Fund (IMF) executive board has approved South Africa’s request for a US$4.3 billion (R70 billion) loan to overcome the COVID-19 pandemic. The Radical Economic Transformation (RET) crowd is probably seeing red after South Africa and the International Monetary Fund (IMF) agreed to a $4.3-billion (R70-billion) loan. The International Monetary Fund (IMF) has approved a R70 billion (US$4.3 billion) loan for South Africa to help the country manage the immediate consequences of the fallout from COVID-19. “Finance Minister Tito Mboweni’s debt stabilisation plan, outlined in his emergency Budget, was met with scepticism by ratings agencies Moody’s and Fitch, as well as domestic economists, with many pointing out that stabilising debt at 87% of GDP with shrinking revenues and no real cost containment plan is simply not credible. However, South Africans have not been informed about the terms and conditions of this loan at all. The real IMF show is still coming to town. South Africa will need to adhere to all IMF conditions to make use of the funds. Washington, DC: The Executive Board of the International Monetary Fund (IMF) today approved South Africa’s request for emergency financial assistance of SDR 3,051.2 million (US$ 4,286.5 million or 100 percent of quota) under the Rapid Financing Instrument (RFI) to meet the urgent balance of payment (BOP) needs stemming from the outbreak of the COVID-19 pandemic. The R70 billion loan from the IMF is part of the government’s R500 billion stimulus package to support the economy. The IMF’s loan is part of the government’s R500-billion social and economic response to Covid-19. IMF approves $4.3bn loan to South Africa Monday 27 July 2020 - 8:43pm The International Monetary Fund has approved South Africa's loan request of … 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… Now let's see how the World Bank, IMF and WTO operate in Sub-Saharan 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. What’s your interpretation of it? If a country has to go to the fund for a bailout, it generally means it has failed. By Martin Armstrong and Humanarefree.com [Side Note: Someone deserves to go to jail for a long time for treason. The New Development Bank and the African Development Bank have … 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. Indeed, without such urgent reform, a full-on balance of payments crisis will loom on the horizon, and then the ANC’s IMF nightmare will be realised. The World Bank and the IMF are very interested in countries such as Ghana where they can easily control the natural resources and the markets. Before it's here, it's on the Bloomberg Terminal. Analysis - 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 facility is the country’s maximum entitlement under its special drawing rights with the IMF. Consequently, the funds will be … “Eventually, and this seems of high probability, South Africa does not reform and falls off the fiscal cliff, then the next step will be for the IMF to impose reform on South Africa for a much larger bailout which will have conditionalities to get the money in chunks – this is coming in two to three years,” Montalto said. South Africa’s finance minister Tito Mboweni says the IMF loan will limit the country’s economic vulnerabilities which have been exacerbated by Covid-19. The facility is the country’s maximum entitlement under its special drawing rights with the IMF. Government debt is projected to peak at close to 90% of GDP in 2023-2024 and the budget deficit will swell to a record this year. The loan comes days after President Cyril Ramaphosa said the government will crack down on corruption linked to its coronavirus response and ordered a probe into the misuse of public funds. 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. SA will be able to honour conditions of R70bn IMF loan - Treasury DG Mogajane. The Conversation Africa’s editor, Caroline Southey, asked Danny Bradlow to shed some light on what South Africans should expect. It emerges that what was sold as a R500bn loan to South Africa from IMF for Covid Relief was actually a personal bribe to Cyril Ramaphosa to destroy the ANC and collapse the South African economy. Loans currently made by the World Bank and the IMF do not have interest rates of 9 to 10%, Adjasi told Africa Check. IMF says South Africa loan talks occurring at measured pace The $4.2 billion loan is the country’s maximum entitlement under its special drawing rights with the lender. Consequently, the funds will be … The … The request for emergency financial support under the Rapid Financing Instrument (RFI) will help the country to mitigate the adverse social and economic impact of the pandemic. 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. 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. One common scenario is a balance of payments crisis, which occurs when a country cannot pay for crucial imports such as oil or service its debt to external lenders. On the other hand, some among them may be gleeful about the prospects of extra loot. The World Bank, on its part, has approved emergency funds for various countries to help them fight the pan… Its contents are the core of the conditionalities attached to IMF financing. The IMF loan does not impose any conditions over and above what is in South African law on how the funds can be used. If you believe money can just be printed, it doesn’t matter if the printing press is in Washington or Pretoria. The South African Reserve Bank is the fiscal agent for the government in dealings 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. “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.”. However, to succeed, Mboweni’s debt stabilisation plans will require precisely the kind of austerity that the IMF would insist on,” NKC African Economics said in a note to clients. Long Bonds Are Enthralling Traders Across the Globe, Biden Stimulus Gets Skeptical Response From GOP Moderates, Australia Unemployment Falls to 6.6% as Recovery Strengthens. The African National Congress (ANC) has long been wary of the IMF and for good reason. The Conversation Africa’s editor, Caroline Southey, asked Danny Bradlow to shed some light on what South Africans should expect. Nine government agencies, including the National Prosecuting Authority, police and national tax agency, are investigating allegations of wrongdoing. Many people are saying it’s the first of perhaps, many. Have a confidential tip for our reporters? South Africa’s $4.3 billion emergency facility from the International Monetary Fund will be released on Wednesday and the country will only start repaying the loan in 2023. The International Monetary Fund (IMF) and the World Bank are long-standing lenders to Africa. BM, Please sign in or register to enable this feature. 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 International Monetary Fund (IMF) executive board has approved South Africa’s request for a US$4.3 billion (R70 billion) loan to overcome the COVID-19 pandemic. It has to be repaid in eight equal installments, the first of which is due at the end of 2023, he said. 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