South Africa will approach IMF for health funds if needed

Government is considering an ’emergency budget’.
Finance Minister Tito Mboweni. Image: Moneyweb

South Africa will approach multilateral lenders such as the International Monetary Fund and World Bank for assistance in fighting the coronavirus pandemic only if the country runs out of money for health interventions, Finance Minister Tito Mboweni said.

“As of today I do not see the need for World Bank or IMF funds, but I am keeping them in my back pocket,” Mboweni said on a call with reporters Sunday evening.

The Sunday Times newspaper reported earlier on Sunday that South Africa may approach the IMF for the first time ever to help with funding to deal with the fallout from the coronavirus outbreak. Officials from African governments had a call with the IMF on Saturday and the lender has put in place a short-term liquidity facility to help countries who have problems accessing foreign exchange, Reserve Bank Governor Lesetja Kganyago said. The World Bank is putting in place facilities to help countries respond on the health side, he said.

While the government would in principle approach the IMF if needed, the first port of call would be the World Bank and New Development Bank, Mboweni said.

On the amount the country may request from the IMF, he said “let’s cross the bridge when we come to the river.”

© 2020 Bloomberg

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Money for Saa or Eskom?

Tito is deserving of credit ….personally his wisdom was always a thorn in the government as it meant the good times of squander are over

Tito is known to be a thrifty person and he is really the last bastion of hope. I have no confidence in any other minister and that includes the current president

I say again, why do we need an IMF downgrade to have structural reform. They, being Cyril has always hidden beh8nd others, including Deputy to Zuma. Where is Cyrils leadership, visuon, besids cyber cities and etc.

Approaching the IMF has little to do with the coronavirus. With the ANC running South Africa into the group with their flat out looting of tax revenues, it was inevitable that the country would need bailouts.

Perhaps Tito and Cyril could show us other countries who are looking for bailouts at the moment to compare?

How convenient that the coronavirus game about a year sooner than a bailout would be required. What a timely excuse.

Sadly, far larger bailouts than a “coronavirus impact” bailout are going to be require and the IMF will force the end of BEE and talk of EWC otherwise their loans wont be viable for payback from a government who is now officially rated as junk.

The ANC is going to milk the CCPVirus for everything it’s worth, that much is clear.

All the trade Unions, EFF, Communist party etc. should take cognisance of the conditions, that the IMF (the financial Colonial masters) will set for their loans – the days of the ‘’chest of gold’’ that was emptied daily by the current government and its cohorts (state capture), is over

IMF Conditions: When a country borrows from the IMF, its government agrees to adjust its economic policies to overcome the problems that led it to seek financial aid. These policy adjustments are conditions for IMF loans and serve to ensure that the country will be able to repay the IMF.

And for ‘’our people’’ in the front benches in parliament, that were rubbing their fatty fingers, planning to pass legislation for ‘’the State Robbery of the Century’’ – Land expropriation without compensation – just move back orderly and slowly to the ‘’back benches’’ – as Moody’s with a very well calculated move, put paid to all your plans and schemes – we will all be living in a very changed South Africa after all these latest ‘’shocks and scares’’ – we will soon find out what it means to ‘’tighten our belts’’ .

My worst fear for sunny SA is that we will have to declare a ‘’State of Emergency’’, in the not too distant future to prevent our ‘’Tunisia Moment’’ – with all the chaos, disobedience and carnage that is busy escalating out of control in SA.

Government was going to have to hold out the begging bowl to the IMF soon anyway. May as well do it now so they can evade responsibility by blaming Corona.

The imf is used to Africans begging with cap in hand at their doorstep. Madam, the sugar…she is finish!

No the “sugar” is safely tucked away in a Swiss bank account…..

Free markets dont have bailouts, the bomb needs to explode now.

Maybe it is time to cowboy up, Minister Mboweni? Why waste a good crisis? It is very apparent that the experience, skills and expertise SAs can offer the ANC Government is not valued. Why otherwise demonstrate to the constituent the accolades of international advisors which is distant from the SA realities. Maybe it keep your Heads in the clouds, while the house is burning? Question, what has happened to the myriad of ideas you solicited prior the budget.Write a book or publish those ideas for public comment. Maybe you will aslo be shocked…………….

The World Bank or one of those issued Pandemic Bonds a few years ago. I think it was $500m. It paid 10% interest in USD (!!!!), but the capital or a large portion of capital is forfeited if a pandemic is declared.

Very neat system. Those proceeds should now be available

Most likely. Two direct IMF demands. BEE one, the other, land reform as planned. To get the country back on the road of self reliance. The result will be like magic. The birth of a nation, long overdue, and the envy of all.

This could absolve the ANC from their ill conceived promises and allow them to dodge the political bullets.

Better join the IMF queue quickly, it’s getting longer each day.

While this is the medicine required to cure the patient, the side effect is a few years later is the EFF socialist revolution a few years down the line.

One day you’ll look back and think R17.5 to the dollar was a wonderful price.

The IMF must place a caveat on any bail out – collect the funds expropriated illegally from Treasury by the cadre’s and in the majority of cases imprison the perpetrators – at the end of the day the poor and the taxpayer are punished for the ANC mismanagement

Since 1912 the ANC demanded the right to govern and in 1994 they got it. But in just 25 years they have bankrupted this country. All they can do is steal and refuse to prosecute. I have no respect for the ANC and I don’t care that the NP government threw them in jail.

Cyril and Tito always new IMF was coming. perfect, hide behind IMF and labour has no say, including Cosatu. cyril allay. they too will put hands in air and say not our fault.
Maybe, blame 25 years of poor planning, starting with Trevor Manuel and Co, spending R80 billion in 1998 on arms deal. Eskom was making money then, yet treasury never provided for eskom boiler replacement. This was started many years ago. Cyril also came from cosatu and then quickly turned capitalist.

MORE & MORE & MORE& MORE debt. What does this government “THINK” they are achieving????Sounds like some ROOT level problems exist and continue to exist??? Maybe the A N C should start putting the country first, instead of party?? Imagine a properly run country?? It’s only a dream with the current regime.

End of comments.

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