WASHINGTON (Pakistan Point News / Sputnik - 28th July, 2020) The International Monetary Fund said on Monday it has approved $4.3 billion as emergency COVID-19 funding to help South Africa balance its economy and meet payment obligations amid challenges posed by the pandemic.
"The IMF approved US$4.3 billion in emergency financial assistance under the Rapid Financing Instrument to support the authorities' efforts in addressing the challenging health situation and severe economic impact of the COVID-19 shock," the world funding body said in a statement.
The IMF said the viral outbreak has caused severe structural constraints to South Africa's growth, weakening economic activity that heightened unemployment, poverty, and income inequalities despite significant government spending.
"Once the pandemic is behind, there is a pressing need to ensure debt sustainability and implement structural reforms to support the recovery and achieve sustainable and inclusive growth," the IMF said. "The Rapid Financing Instrument (is) to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19."
The virus has infected more than 445,000 South Africans and killed nearly 6,800, according to John Hopkins University data.
