Mboweni says IMF loan not for salaries

Tito Mboweni

File: Finance Minister, Tito Mboweni.

AFP/Rodger Bosch

JOHANNESBURG - Finance Minister, Tito Mboweni is dismissing concerns that an IMF loan will be wiped out by paying public service salaries.

But, he could not definitively say the money will not be used to service the public sector wage bill.

Mboweni told Parliament the loan forms part of the National Revenue Fund.

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This fund is used for government programmes, which could include salary payments.

The IMF approved a request for R70-billion under its Rapid Financing Instrument.

Mboweni says the loan provides a low-interest opportunity to provide counter-cyclical support to the economy.

Source
eNCA