Finance Minister Tito Mboweni said the combined fiscal and monetary policy package to keep the economy running amid the COVID-19 crisis now amounts to R800 billion.
This week President Cyril Ramaphosa announced a R500 billion stimulus package, but Mboweni said an extra R300 billion will be invested in the economy by the South African Reserve Bank over this period.
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The finance minister was briefing the media on the details of the package on Friday.
He said the R800 billion will bring additional life into the country’s financial system, keeping it oiled as we battle the impact of the COVID-19 pandemic.
“It doesn’t mean that these are funds in the hands of the fiscus. But this will be funding in an economic system.”
Government has had to raise funds through budget reallocations and re-prioritisations.
However, the finance minister also confirmed that South Africa has been in talks with the International Monetary Fund (IMF), World Bank and the New Development Bank, looking at loan facility options to deal with the coronavirus impact.
“The fact of the matter is that South Africa is a member of the IMF and World Bank. We pay our subscriptions on a regular basis, and therefore we are entitled to approach those institutions if we so need.”
As the country transverses the crisis, Mboweni emphasised that private business has come to the party – offering various financing vehicles to cushion businesses and consumers.