Here's what you need to know about the R70 billion IMF loan to SA
South Africa stands on the edge of an abyss, pushed there by the effects of an economically brutal Covid-19 lockdown.
And President Cyril Ramaphosa has made it clear the country does not have the resources to move back from the brink - which is why it is relying on this R70billion IMF loan, reportedly the largest such loan made.
Sifiso Skenjana, chief economist at IQ Business, speaks to Refilwe Moloto about the country's promised R70billion IMF loan, and other measures the government hopes, will save the country's economy exacerbated by the Covid-19 pandemic and resulting lockdown.
The IMF has got what they call rapid credit facility designed for low and middle-income countries, who have faced some kind of shock into their economic system.Sifiso Skenjana, Chief economist - IQ Business
He explains that kind of economic 'shock' results in a balance of payments issue where the country is unable to finance itself.
It often also results in a widening of inequality and poverty and the dampening of growth.Sifiso Skenjana, Chief economist - IQ Business
It is viewed as an outright disbursement directly aimed at creating a number of financial response buffers to these organisations, he says.
$4.7 billion or R70 billion seems a lot, suggests Refilwe. But Skejana says the expected revenue shortfall from the budget was pegged at around R300 billion
In addition, there is money come in from both the African Development Bank and the New Development Bank as well, totalling around R75 billion.
In the context of where our financial positioning is as an economy, it certainly points to the fact that we are materially constrained from a fiscal point and these are financial assistance solutions that we certainly can do with as an economy.Sifiso Skenjana, Chief economist - IQ Business
He says statements from National Treasury indicate the money will be targeted at poverty eradication.
So it is probably going to go towards partially offsetting some of the grants that are coming in, but also to the health response and probably some portion of it towards trying to boost some economic recovery.Sifiso Skenjana, Chief economist - IQ Business
Listen to the interview below:
"If allowed to trade, we can’t be on the edge of our seats every time that the President is about to speak," pleads Kurt Moore.Read More
The bank is one of only six in the world to be recognised in this way for outstanding performance during the global health crisis.Read More
Breweries in SA can't sell beer but they can sell wort, a key part of the normal beer-making process. Here's how it works.Read More
On Wednesday morning Health Minister Zweli Mkhize delivered an update on the Covid-19 pandemic in South Africa.Read More
Gyms and health enthusiasts will take to the streets on Wednesday to protest the continued closure of fitness facilities.Read More
"We have a 29-page set of world-class safety protocols. We want to get back!" pleads FitSA spokesperson Grant Austin.Read More
"We need to understand residents’ lived experience of the pandemic," says Mireille Wenger. Is the government doing what it should?Read More
Some public healthcare workers claim a lack of quality PPEs led to the deaths of 8 doctors working at hospitals in Gauteng.Read More
Healthcare workers across the globe have been reporting symptoms of stress, depression and anxiety as a result of the pandemic.Read More
A Durbanite posted a video on Twitter showing surfers and other beachgoers making a hasty exit to evade police on a Durban beach.Read More