South Africa’s opposition parties, led by the Economic Freedom Front, on Tuesday expressed disapproval of the government’s move to borrow US$4.3 billion from the International Monetary Fund to help the country’s economy withstand the ravages of the coronavirus pandemic.
According to the IMF, Pretoria was expected to pay back the loan in five years at an interest of just over one percent.
But in rejecting the loan, EFF party spokesperson Vuyani Pambo expressed fears that the funds would come with stringent conditions that would ultimately compromise the country’s sovereignty.
Another opposition party, the Congress of the People (Cope), also reacted negatively to the loan’s announcement on Monday.
Cope spokesperson Dennis Bloem said that, with rampant corruption in the country, there was no guarantee that the borrowed funds would be used for the intended purpose.
The loan marked the first time South Africa had turned to the Breton Woods institution for such type of a transaction, and the opposition parties have blamed President Cyril Ramaphosa and Finance Minister Tito Mboweni for this turn of events.
South Africa is among 70 countries that have accepted financial loans from the US-based IMF to help them cushion their economies from the negative impact of the Covid-19 pandemic.
The virus has killed over 7,000 people from 452,529 infections since it broke out in the Southern African state in March this year, Health Minister Zweli Mkhize said on Tuesday.
NM/jn/APA