The IMF has lent South Africa R70bn – here's how it works

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It’s hoped the loan will help create jobs in SA as the coronavirus pandemic has left many unemployed. (Photo: Getty/Gallo Images)
It’s hoped the loan will help create jobs in SA as the coronavirus pandemic has left many unemployed. (Photo: Getty/Gallo Images)

It's a lot of money by anyone’s standards – and it will go a long way towards fighting the disastrous effects Covid-19 has had on South Africa’s ailing economy.  

It’s the biggest amount loaned to any state as part of the IMF’s Covid-19 relief programme, and President Cyril Ramaphosa and finance minister Tito Mboweni will no doubt be breathing a sigh of relief.

But the reaction to the news of the R70-billion loan from the International Monetary Fund (IMF) to SA hasn’t all been positive. Some say we’re opening ourselves up to a world of pain by taking money from the financial institution. 

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