Interview: SA’s problems precede the virus
POSTED ON: July 20, 2020 IN Covid-19, Economic policy by Admin
An IMF loan through its stand-by arrangement means SA would have to sign up to conditions. While on the surface it is presented as not being a loss of sovereignty, in reality it is.
South Africa has approached the IMF for $4.2bn in assistance in the face of the Covid-19 crisis. It’s important to note that this loan will not come with the normal harsh conditions. However, unless SA itself implements reforms that are already on the table and have been agreed to by government, it is likely that we’ll have to apply for another IMF loan through its stand-by arrangement where we will have to adhere to stringent conditions – including implementing the very same reforms. In essence, our sovereignty will be lost, affecting all spheres of society. It needn’t be this way if we, ourselves, take the reform decisions already on the table, now.
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