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By ANA Reporter 
15 hours ago
Parliament – Finance Minister Tito Mboweni confirmed on Wednesday that South Africa’s chances of obtaining a loan from the World Bank may have diminished, but says the National Treasury remains in talks with the institution.
He suggested that, as discussions were about a standard lending structure, conditions may be stricter than those associated with extended lending in the context of the Covid-19 pandemic.
“If I understand correctly, this is not a Covid-related loan and this is what complicates matters,” Mboweni said in a press conference following his statement on medium-term budgetary policy.
“Conversations are ongoing … In my opinion, the likelihood of success is probably lower, but we are still pushing for success.”
Without divulging any details, the minister indicated that he was concerned about the position adopted by the World Bank.
“I am very concerned about some of the positions that the World Bank is taking, but we are discussing them internally and will refine our approach in the conversation with the World Bank so that we can have a positive outcome.”
South Africa secured a $ 3.4 billion low-interest loan from the International Monetary Fund in late July to help the country through the Covid-19 crisis and expects a loan deal with the World Bank to follow in August. .
However, months later there were reports that this hangs in the balance.
International telemanagement agencies reported that talks, which began in April, were derailed by the World Bank’s insistence that South Africa cut its public wages and warrants that it will not use the funds to support loss-making state entities.
In the MTBPS, Mboweni made an annual allocation of R10.5 billion (US $ 641 million) to South African Airways to finance the hotly contested corporate bailout for the domestic carrier.
African News Agency (ANA)
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