July 31, 2020 | Cbonds
|On July 28, the IMF approved the financial support of $4.3 billion to help deal with the effect of the COVID-19 pandemic in South Africa. The amount represents 100% of the country’s quota in the Fund. |
The country got help from the Fund for the first time in 26 years. It has the most diversified economy among African countries and is also a member of G20. 90% of the sovereign's public debt is owed to domestic creditors; a capital market weighs 20.7 trillion rands. That's why previously it considered any support as an unnecessary measure.
According to Geoffrey Okamoto, IMF’s First Deputy Managing Director, and Acting Chair, “South Africa’s economy has been severely hit by the COVID-19 crisis, reporting the highest number of cases in sub-Saharan Africa. A deep economic recession is unfolding as the decline in domestic activity and disruptions in the global supply chain resulting from the COVID-19 shock have added to a pre-existing situation of structural constraints, subdued growth, and deteriorating social outcomes.”
South Africa hasn't entered the international bond market this year. Still, yields of its outstanding bonds confirm the country's stable position regarding other African countries.
Currently, Namibia is negotiating $273 million in aid from the IMF.
Società: South Africa
|Nome completo della società||Republic of South Africa|
|Paese di registrazione||South Africa|