Interest rate on $4.2bn IMF loan to South Africa will be ‘very, very low’

The International Monetary Fund (IMF) reported on Monday that its funding talks with South Africa had proceeded at a “measured pace” owing to the country’s favourable access to deep and liquid financial markets, which meant that the negotiations had focused primarily on the terms of the funding rather than the urgent disbursement of funds. In a move that is controversial domestically, South Africa has approached the IMF for a $4.2-billion loan to assist it in closing a funding gap that has developed as a result of additional government spending commitments that have been announced as part of the country’s response to the Covid-19 pandemic.
Tagged :