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South Africa Could Borrow About $7 Billion, As Tito Mboweni Warns Of Sovereign Debt

TheNewsNet 06/24/2020

South Africa Could Borrow About $7 Billion, As Tito Mboweni Warns Of Sovereign Debt

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COVID-19 has been attacking South Africa furiously. South Africa has surpassed over 100 000 confirmed cases of COVID-19. The country is standing on 106 000 cases with 55 045 recoveries and 2 101 fatalities.

However, this disease is not only taking the lives of South Africans, it is also sinking the country financially. South Africa was already in debt when we stepped in this pandemic.

Finance Minister Tito Mboweni had an emergency budget speech and laid out his plan to stabilize debt. 

This is what tito Mboweni said on the speech

"public finances are widely overstretched. “If we remain passive, economic growth will stagnate. Our debt will spiral inexorably upwards and debt‐service costs will crowd out public spending on education and other policy priorities.

"We already spend as much on debt‐service cost as we do on Health in this financial year. Eventually the gains of the democratic era would be lost. 

"the wide gates open for Bankruptcy, and if we do not act now, we will shortly get there.

Tito Mboweni said a lot on his speech, he also mentioned that borrowing $7 Billion will also put the country in danger as this debts keep raising higher and higher

The minister wants to implement a plan that's gonna create jobs for South Africans so that the country can stop with unemployment grant. 

Basically, the minister of finance is trying to prevent the country from sinking, without making a loan in a foreign country. 

Source: opera.com
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