The National Treasury is looking to raise R95bn from multilateral institutions and development banks for business support, job creation and protection of existing jobs in the midst of the Covid-19 crisis.
This R95bn will contribute to the R500bn stimulus package announced by President Cyril Ramaphosa, with R200bn being allocated for the national credit guarantee scheme; R130bn coming from the base reprioritisation of budgets; R60bn from additional transfers from social security funds; and R15bn from available funds from the department of social development.
Mogajane said it is likely that the recession will be the worst since the Great Depression. The Treasury has forecast a contraction in GDP of 5.4% this year if the pandemic is contained quickly and the economy bounces back; a contraction of 12.1% if the pandemic takes longer to contain and the economic recovery is slower; and a contraction of 16.1% if the pandemic endures even longer and recovery is spread over a longer period.
The comments were made during a briefing by the Treasury to a joint committee of parliament’s two finance committees — the appropriations committee and the standing committee of public accounts — on the fiscal implications of Covid-19 and the interventions to save and stimulate the economy.
For what? For pocketing it in MYANC cadres' bank accounts and destroying the money trail through various acts of laundering, racketeering and siphoning? EFFSouthAfrica Effgroundforces effjoburg
They're worried about giving food parcels and not addressing the infrastructure backlog that we have in SA. We cannot be having children still drowning in rivers because they are trying to cross to go to school etc. This LockdownSA should present an opportunity to rebuild.
Begging bowl we have become a nation of beggars. We want we can't work for it if we don't get it we burn. That is our culture. Look at the state of our schools burn burn burn. Don't ban cigarettes ban matches
They just borrowed R500Bn, friekken hell!!
Bring the bags home, lord knows we need to rebuild and reinforce the economy.
Capitalist Sellouts are bonding us to the imperialist highest bidder, like they did in 1994 elite negotiations that resulted in elite capitalist democracy. I wish crony elite-leaders live longer to learn what’s meant by people’s democracy, to see themselves accounting real time.
THE ANC DECISIONS REGARDING FINANCE ARE VERY DANGEROUS.JUST THINK OF IT, THEY BOUGHT 1000 TRAINS AT ONCE,THEY STARTED WITH ARMS DEAL, WHOSE INTEREST ALONE IS BILLIONS, THEY GAVE GUPTAS A TRILLION, A GIFT TO CUBA OF 1/2 BILLION, NOW LOAN AGAIN..SCAREY REALLY.THE NEXT GOV WILL SUF
Vicious cycle!!
I trust these institutions will firstly ask Cyril if his Venezuelan brother can't help and secondly if this relief money will be applied in a racist manner.
Probably quicker to raise it through sin tax
Moeletsi Mbeki was right about the ANC, they are the architects of our poverty.
or you could just print the rand to a confetti once and for all junkstate
More loan's.