SACP slams Mboweni's decision to borrow money

The SACP has slammed the finance minister's decision to borrow seven billion US dollars from international financial institutions.

Tito Mboweni made the announcement on Wednesday during his emergency budget.


JOHANNESBURG - The South African Communist Party (SACP) has slammed Finance Minister Tito Mboweni's decision to borrow $7-billion from international financial institutions.

Mboweni made the announcement on Wednesday during his emergency budget speech.

The party says the minister does not have their 'express permission' to approach the IMF or World Bank.

WATCH: SA economy to shrink by 7.2% in 2020

SACP 1st Deputy Secretary-General Solly Mapaila says there are local sources of funding.

"Our view is that the Reserve Bank must be able to play a role, including buying some of the government bank.

READ: Debt is our weakness, says Mboweni

"We don't have to go to the private market when we are a sovereign country that is able to produce sovereign currency," Mapaila said. 

Mapaila adds that the country should be able to buy government bonds and debts through the Reserve Bank.

He said the country must stop with the obsession with the IMF and the World Bank.


Paid Content