Mogajane: IMF loan would come with 1% interest
This comes after President Cyril Ramaphosa said that a R500 billion stimulus package was being made available by government to help the country through the COVID-19 pandemic.
JOHANNESBURG - Treasury Director General Dondo Mogajane on Friday said the rate at which money was being borrowed from the International Monetary Fund (IMF) and others to fight COVID-19 was still being discussed but would be affordable.
He said the IMF and others would help in funding South Africa.
Talking on the Money Show on Friday evening, Mogajane said this was cheap money with low-interest rates.
“It’s a specific type of loan with IMF, the interests are very low. The IMF arranged a 1% interest. So you can see this is very cheap.”
He said a number of others were also helping: “$1 billion from the New Development Bank and $15 million from the World Bank, we haven’t finalised with the African Bank because it’s a bit slower in terms of finalising the support that is possible to South Africa.”
LISTEN: National Treasury reveals R500 billion stimulus package budget