Opposition MPs have mocked efforts to launch a new airline while the COVID-19 pandemic rages – but Gordhan said the government’s aim is to have a viable, competitive, and sustainable airline.
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.
On paper, this sounds like something that could go a long way in repairing some of the devastation we've seen over the last few months but the reality could tragically be very different and South Africans know it.
National Treasury on Tuesday said that the multi-billion rand loan from the International Monetary Fund (IMF) had not jeopardised South Africa’s sovereignty.
The IMF on Monday approved South Africa’s request for a $4.3 billion loan, which translates to about R70 billion.
The Washington-based crisis lender late last month downgraded its growth forecasts, and now expects global GDP to fall by 4.9% this year due to the deeper contraction during lockdowns.
He said the ANC had confidence in its deployees in government to get the loans but only if conditions were favourable to the country.
'This would be below the adequate level of reserves for Uganda, and would leave the country in a vulnerable position,' the IMF said.
The IMF had had approved the funds on Monday in an effort to help Egypt to contend with the new coronavirus pandemic that has brought tourism to a standstill and triggered capital flight.
The government has responded to the crisis with a range of fiscal measures, including cuts to value-added and income taxes, which have worsened a number of indicators, the IMF said.
Zambia was already wrestling with a growing public debt even before the new coronavirus outbreak forced lockdowns across the globe, delivering a big blow to demand for raw materials.
The minister was speaking during a meeting of Parliament’s finance committees on Tuesday when he defended the decision to consider the IMF’s $4.2 billion loan facility for COVID-19 specific purposes.
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.
The minister briefed reporters earlier on the R500 billion relief package, which would be used to circumvent the harsh impact of the pandemic.
The World Economic Forum’s Africa head, Elsie Kanza said this would allow the continent to prioritize healthcare while economies recover.
The currency was 2% weaker at 18.6770 per dollar by 1500 GMT, straying back into bear market territory as investors were spooked by a dire global growth outlook from the International Monetary Fund (IMF).
With the World Bank and IMF spring meetings due to take place this weekend, this is what the continent will need from it.
