Imf
Govt will not accept strings attached to loans from World Bank, says Mboweni
Speaking during a webinar organised by Bloomberg on Tuesday, Finance Minister Tito Mboweni was asked about progress on securing a loan from the World Bank.
The IMF expects global growth to contract by 4.4% this year before rebounding 5.2% in 2021. However, IMF Managing Director Kristalina Georgieva noted third-quarter growth was better than expected in the US, Japan, and European countries.
Growth in 2021 is expected to be slightly slower than forecast in June and even weaker in the next few years due to the lasting damage inflicted by COVID-19.
Zambian President Edgar Lungu on Saturday dismissed central bank governor Denny Kalyalya and replaced him with former deputy finance minister Christopher Mphanza Mvunga.
The IMF loan is part of $7 billion in planned borrowing from international financial institutions.
The IMF loan does not impose any conditions over and above what is in South African law on how the funds can be used; it only seems to expect the country to implement policies already announced.
The SIU is already investigating dozens of companies that were awared tenders irregulary using COVID-19 relief funds.
National Treasury on Tuesday said that the multi-billion rand loan from the International Monetary Fund (IMF) had not jeopardised South Africa’s sovereignty.
Director-general Dondo Mogajane reflects on the R70 billion loan granted to the country by the International Monetary Fund.
The IMF funding is a low interest loan that contributes to government’s fiscal relief package while respecting South Africa’s decisions on how best to provide relief to the economy and those worst affected by the current crisis.
The government is either in talks with or plans to approach the International Monetary Fund, the New Development Bank (Brics bank)) as well as the World Bank for urgent funding.
Africa is more vulnerable to the impact of COVID-19 because it is highly dependent on imports for its medicinal and pharmaceutical products and on commodity exports.
The Fund’s staff was considering requests from Sri Lanka, South Africa and Zambia.
The Institute of International Finance said that it expected South Africa's economy to contract by 2.5% in 2020 but said that waning demand, travel restrictions and pandemic-related closures could lead to a deeper recession.
Top officials in the Fund’s Africa Department said they have received requests for emergency financing from over 20 nations in the region and expect at least 10 more soon.
The IMF suspended its last aid to Congo after the government failed to provide sufficient details on the sale of state mining assets to an offshore company.
Policymakers should work together to 'try to reduce the fragility and ... resolve the uncertainty,' facing the global economy, Christine Lagarde told the media during an interview.
When the governing party is at war with itself, it is a disaster waiting to happen, writes Fikile-Ntsikelelo Moya.
President Cyril Ramaphosa said that the world leaders have affirmed their commitment to the implementation of the 2030 agenda for sustainable growth.