Why South Africa took a R11.4 billion loan from the World Bank: finance minister

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The decision to take on a R11.4 billion ($750 million) loan from the World Bank is not out of the ordinary and forms part of the government’s normal budgeted finance plans, says finance minister Enoch Godongwana.

The decision to take on a R11.4 billion loan from the World Bank is not out of the ordinary and forms part of the government’s normal, budgeted finance plans, says finance minister Enoch Godongwana.

He added that the Treasury plans to raise R630 billion this financial year, with the R11 billion making up a relatively small portion of this budgeted amount. Godongwana added that Treasury will approach a number of market groups when trying to raise funds including the New Development Bank, the African Development and the World Bank.

This is set to continue unless the government begins containing debt in the short term, he said. The finance minister added that the World Bank loan assists in this containment through favourable terms, with no special conditions attached to the loan. “The World Bank loan has a cheaper interest rate. The Bank also gave us a repayment holiday of three years on the loan. So that is the rationale behind taking this loan.”

 

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To pocket the money so that the world bank can say what to do with our citizens in the country

Pfizer?

To pay ANC staffers?

To build more Nkandlas, eish

R630 billion to be borrowed? Or it just me who does not get it yet irregular expenditure is

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