EFF slams Tito's 'flirtation' with IMF: State shouldn't take advantage

EFF slams Tito's 'flirtation' with IMF: State shouldn't take advantage

- Finance Minister Tito Mboweni recently hinted that he was considering approaching global entities to request loans

- However, the EFF has strongly rejected this notion in a recent statement

- The Red Berets cautioned government against taking advantage of the coronavirus crisis

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!

The Economic Freedom Fighters have rejected 'with contempt' the government's plan to seek out International Monetary Fund and World Bank loans.

In a statement criticising the move, the political party made it transparent that they were not on board with this intention:

"The EFF rejects Tito Mboweni's flirtations with the IMF and World Bank and strongly caution that such a move will worsen South Africa's socio-economic conditions. It is now indisputable that the involvement of the IMF and World Bank in different countries has led to massive reductions in social expenditure, particularly healthcare, education, social development, housing and salaries of public servants."

But, according to the EFF, Mboweni's advances in this respect is not the only cause for concern when it comes to SA's financial standing

"Additional to flirtations with the IMF, Tito Mboweni's austerity budgeting and so-called structural reforms will only weaken the capacity of the State to lead a developmental trajectory that should necessarily develop South Africa's productive economic sectors, create jobs, defeat poverty and reduce inequalities."

READ ALSO: Tito Mboweni: South Africa may need the IMF's help to fight Covid-19

The party opposed seeking loans from the two institutions and to reprioritise expenses instead, with the statement continuing

"The EFF rejects any attempts to take loans from the IMF and World Bank and instead demands that government should reprioritise all its expenses towards stabilisation of healthcare in South Africa. There are many unnecessary government expenses which should be refocused towards quality healthcare provision, and this includes bloated cabinet, which must be cut by more than 50% and removal of all deputy ministers."

Briefly.co.za reported that, while he had earlier urged against the move, Finance Minister Tito Mboweni was considering seeking out financial assistance in SA's time of need.

However, the EFF has warned against the government taking advantage of the situation

"Government should not take advantage that we are all united in the fight against the coronavirus outbreak, and now begin to engage in catastropich activities such as taking dangerous loans."

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly.co.za

Online view pixel