COVID-19: IMF approves $4.3 bn loan for SA to fight pandemic

The International Monetary Fund has approved 70 billion rand (about $4.3 billion) loan for South Africa to enable the country mitigate the impacts of Coronavirus.

The low interest loan comes after the African Development Bank last week approved 4.7 billion rand loan to South Africa.

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Under the special drawing rights with the IMF , South Africa will repay the loan within five years at an interest rate of 1%.

It is the first time that South Africa has approach the the IMF for a facility since it became a democratic society in 1994.

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So far, South Africa has secured financial assistance of more than 90 billion rand ( $5.4 billion) to reduce the effects of Covid-19 on its economy.

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