EFF furious after IMF approves R70.7 billion loan for South Africa

EFF furious after IMF approves R70.7 billion loan for South Africa

- The International Monetary Fund has approved a R70.7 billion loan for South Africa, aimed at fighting Covid-19

- This is SA's first-ever loan from the IMF and is expected to be paid out within the next few days

- The Economic Freedom Fighters have condemned the move, which has increased SA's debt burden

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The International Monetary Fund has approved a R70.7 billion loan to South Africa in a bid to address the socio-economic impact of Covid-19.

This will be South Africa's first-ever loan from the fund and is expected to be paid in the next few days. More details on how SA will support the loan are expected later this week.

The Economic Freedom Fighters have reacted to this news with fierce condemnation:

"The EFF rejects the decision by the IMF Executive Board to approve South Africa's request for a loan of R70.7 billion. This is the biggest political blunder in the history of South Africa."
coronavirus

The EFF insists that the loan will come with consequences for SA. Image: @EFFSouthAfrica
Source: Twitter

READ ALSO: African Development Bank green-lights R5 billion loan for South Africa

The party is adamant that the fund will come with unpleasant strings attached, continuing to say that:

"Loans from the IMF always come with neoliberal and neo-colonial conditionalities and South Africa will not escape from this reality. Whether immediately or in the long run, the IMF will impose conditionalities with will certainly undermine South Africa's macroeconomic and fiscal policy sovereignty."

The party has firmly placed the blame for this perceived crisis at President Cyril Ramaphosa's feet, commenting that:

"Ramaphosa is proving to be the biggest danger to South Africa's sovereignty against neo-colonialism. Whilst he is allowing his colleagues and family to loot state resources, he is also sacrificing our country to the highest bidders on the altar of capitalist convenience."

Earlier, Briefly.co.za reported that the African Development Bank has green-lighted a R5 billion loan to South Africa to help it win the battle against Covid-19.

In addition to funding this battle, the loan will also help SA mitigate the economic fallout the pandemic has brought with it. After the SA government requested aid from the bank, it released a statement on the approval of the loan:

“The board of directors of the African Development Bank (AfDB) has approved a loan of approximately R5 billion ($288 million) to the government of South Africa, as the country battles one of the largest Covid-19 caseloads in the world."

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Source: Briefly.co.za

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