ANC defends loan to IMF
The ANC says its R16,4 billion loan will help curb job losses in South Africa.
JOHANNESBURG - The ANC on Wednesday defended its decision to extend its US$2billion (R16,4 billion) loan to the International Monetary Fund (IMF).
According to government officials, it is important to ensure that another global financial crisis does not cost South Africa more jobs.
On Wednesday, the Congress of South African Trade Unions (Cosatu) condemned government's decision.
According to ANC officials, the IMF would make the money available if there was another crisis.
South Africa will still earn interest off the loan.
Cosatu spokesperson Patrick Craven said government cannot justify the decision to loan the money.
"We believe the money will end up from the poor, to the rich. There is no possible justification and it is also a question of priorities."
But ANC spokesperson Jackson Mthembu said the loan is helping the global economy and protecting South African jobs.
"This is only a loan to the IMF and there is no risk to the South African people."