Home Covid-19 Updates SA looking at borrowing R95bn for COVID-19

SA looking at borrowing R95bn for COVID-19

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Covid-19

South Africa will be looking for R95-billion for COVID-19 related interventions. This is according to the National Treasury Director-General, Dondo Mogajane. He was speaking to Karima Brown of The Fix. This comes as the government is working on distributing its R500-billion economic package to mitigate the impact of the coronavirus pandemic.

The stimulus package was announced by President Cyril Ramaphosa to aid the economy and protect millions of South Africans from hunger and social distress during the COVID-19 pandemic. The funds will come from the International Monetary Fund (IMF), World Bank, New Development Bank of the BRICS and African Development Bank.

Dondo Mogajane

“Our debt to GDP ration is certainly going to increase, no doubts. From the estimates we had in February, we are going to be going to the market and borrow more, not only because of this [COVID-19]. Let’s not forget the downgrade. The downgrade has a huge impact on us. Our cost for borrowing has increased,” Mogajane said. These are uncharted territories. It’s a very different environment. We have to do everything at our disposal to make sure we contain the virus, including reprioritising monies from projects that are clearly not priority for now. The DG added that the debt will be serviced in brands. He assured South Africans that the IMF loans will not compromise the country’s sovereignty.

In other news – Kwaito star Mshoza gets married for the third time

You remember when the mistress broke the internet last year with a viral video where she revealed how a top class of a woman she is and urged all men who would try her to be rich. It seems like she finally found the one for her!

Mshoza

Kwaito mega star Mshoza has tied the knot for the third time. Read more

Source: eNCA