IMF approves US$4.3bn financial support to SA to deal with COVID-19 pandemic.
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.
South Africa applied for the loan to cushion itself from the effects of Covid-19 on the economy.
The International Monetary Fund said on Monday its executive board approved $4.3 billion in emergency financing for South Africa to help the country address the “severe economic impact” and health challenges of the coronavirus pandemic.
The IMF said the Rapid Financing Instrument loan, equal to 100% of South Africa’s IMF quota, or shareholding, will help fill urgent balance of payments needs from pandemic-caused fiscal pressures.
It also will “limit regional spillovers, and catalyze additional financing from other international financial institutions,” the Fund added.