The Economic Freedom Fighters (EFF) has rejected the R70 billion International Monetary Fund (IMF) loan to South Africa.

This in addition to R5 billion from the African Development Bank and the R16 billion from the New Development Bank.

The Executive Board of the IMF has approved the country’s request for the loan to help fight the COVID-19 pandemic.

The loan does not come with much stringent conditions and interest.

Pretoria is expected to pay back the loan in five years at an interest of just over 1%.

EFF spokesperson, Vuyani Pambo says the money will come with conditions that will ultimately compromise the country’s sovereignty.

The Congress of the People (COPE) has also reacted to the news about the loan.

COPE Spokesperson Dennis Bloem says with rampant corruption there is no guarantee that the money will reach and meet its intended purpose.

In the video below, Political Analyst, Sandile Swana gives analysis on IMF’s loan:

Funding directed straight to COVID-19

Finance Minister Tito Mboweni says government’s COVID-19 support package totalling R 500 Billion has been directed straight at the problems exposed by the coronavirus.

Mboweni says South Africa’s Reserve Bank has also played an important role in reducing interest rates by a total of 300 basis points as consumers and businesses feel the severe economic effects of the coronavirus lockdown.

In the video below, Minister Mboweni explains the funding from IMF:

Other countries

More than 70 countries have received financial assistance from the IMF to help in efforts to cushion the impact of the COVID-19 pandemic.

In June, the international organisation approved an additional $111.06 million disbursement to Rwanda to address the effects of the COVID-19 pandemic on the country’s economy.

In the same month, the IMF approved Guatemala’s $594 million emergency assistance package and Ukraine’s $5 billion loan.