This may not be the last time South Africa turns to the IMF
rarely shy about spending other people’s money, the African National Congress , South Africa’s ruling party, has long been wary of the. After Nelson Mandela came to power in 1994 the fund practically begged to help his new government. Mandela eventually saw the potential benefits of a cheap loan. But thehas remained a shibboleth of the party. Yet on July 27th South Africa said it had agreed to a $4.3bn loan from the.
This condition-light deal is not quite the Rubicon-crossing that some envisaged. But it is a toe in the water. In a letter to the fund, Mr Mboweni, who in 2018 returned to the government as finance minister, and Lesetja Kganyago, the reserve bank’s current governor, made several pledges, primarily relating to public finances.
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