IMF approves $4.3bn ‘financial support’ to South Africa to deal with Covid-19

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The money will pave the way for government to provide the necessary financial relief required to forge a new economy, says National Treasury.

The International Monetary Fund has approved South Africa’s request for emergency financial support under the Rapid Financing Instrument for an amount of US$4.3 billion to help the country mitigate the adverse social and economic impact of the Covid-19 pandemic.

“It will also pave the way for government to provide the necessary financial relief required to forge a new economy and“The country has been hard hit by the pandemic, and this required government to come up with fiscal and monetary measures that would respond to the struggling economy and contain its negative effects to society,” said National Treasury in a statement.

The funds would reportedly go towards business support, job creation and protection of existing jobs in the current economic climate.Finance Minister Tito Mboweni said: “Government’s Covid-19 economic support package directs R500 billion straight at the problem. This is one of the largest economic response packages in the developing world. The South African Reserve Bank has reduced interest rates and made it easier for banks to lend money, and supported liquidity in the domestic bond market.

Source: Financial Digest (financialdigest.net)

 

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