The approval of a R70 billion loan by the IMF to help South Africa with Covid-19 relief will create a burden.
The institution is known for attaching stringent conditions to loans.
It’s going to create problems for our children, who’ll have to repay the loan in coming years, regardless of the supposedly low interest with which national Treasury said the loan comes.
Every loan has conditions that must be adhered to.
It’s easy for leaders to make debt just to save us from Covid-19, but they need to tread carefully.
We should have exhausted local options, such as the Reserve Bank, before getting into long-term debt with the IMF.
I understand why some South Africans are apprehensive about this loan.
I wonder whether it was necessary for government to run to the IMF for this huge loan.
We mustn’t get too excited about borrowing a lot of money – this spells more trouble for South Africa.
) Slight Ramphaka