SA commits $2bn to IMF

SA commits to lending $2 billion to an IMF fund created to bail out troubled European economies.

President Jacob Zuma is welcomed by Mexican President Felipe Calderon for the G20 Summit in Los Cabos. Picture: GCIS

JOHANNESBURG - Both Business Unity South Africa (Busa) and the Black Business Council (BBC) said government's decision to lend $2 billion to an International Monetary Fund (IMF) fund shows South Africa is a responsible global citizen.

The fund was created to bail out troubled European economies.

The money will only be used if another financial crisis arises, and South Africa will still earn interest on it.

President Jacob Zuma is currently in Los Cabos, Mexico for the G20 Summit where the European financial crisis is dominating the agenda.

Member of the council Sandile Zungu said the country, a member of the G20 and Brazil, Russia, China, India and South Africa (BRICS) economies, is obligated to the health and wealth of the global economy.

While economists welcomed the move, unions blasted it as an expensive show-off.

The Congress of South African Trade Unions (Cosatu) said South Africa should be a beneficiary rather than a contributor.