South Africa needs a loan to finance measures to combat the pandemic - Ministry of Finance

South Africa was in a dangerous economic situation caused by the need to replenish the emergency budget, the funds from which go to combat the economic consequences of the coronavirus pandemic. This was reported by BBC Africa with reference to a statement by South African Finance Minister Tito Mboveni. Speaking in parliament, Mboveni said that the government will be forced to borrow about $7 billion from multilateral lenders in order to finance a program to combat the economic consequences of the coronavirus pandemic. These funds will be allocated to the $30 billion coronavirus pandemic fund created by South African President Cyril Ramaphosa in April. According to the Ministry of Finance, the country's GDP should be reduced by 7,2% in 2020, the largest decline in the country in 100 years, and up to 1.8 million employees may lose their jobs. is projected to reach almost 82% of GDP in 2020, and tax revenue will be more than $17 billion below the target. Almost three months of isolation made it difficult to collect taxes, and economic activity was seriously limited, journalists say. According to the news agency, the unemployment rate in South Africa increased to 30%, and Mboveni said that the state will spend more than $5 billion on creating jobs. He also said that the government will give priority to infrastructure programs, which he said are crucial to overcoming the crisis associated with the pandemic.