South Africa\u2019s debt levels will exceed 100% of gross domestic product by 2024-25 and rise to almost 114% by 2028-29, according to a document presented by finance minister Tito Mboweni and seen by Bloomberg.<\/p>\n
Mboweni made the presentation to the National Economic Development and Labour Council on Friday, according to posts on his Twitter and Facebook pages.<\/p>\n
It shows gross government debt will rise to 80.5% of gross domestic product in this fiscal year, compared with a projection of 65.6% in February, Bloomberg said.<\/p>\n
The trajectory presented shows no sign of stabilizing by 2028-29.<\/p>\n
Mboweni is due to present a special adjustment budget that will reflect the devastation wrought on the economy by the coronavirus as well plans to fund a R500 billion ($28.85 billion) stimulus package June 24.<\/p>\n
The Board of Directors of the New Development Bank (NDB), meanwhile, has approved a Covid-19 Emergency Program Loan of $1 billion to the Government of the Republic of South Africa.<\/p>\n
\u201cThe Covid-19 Emergency Program Loan to South Africa will be provided in response to the urgent request and immediate financing needs of the South African Government.<\/p>\n
NDB\u2019s assistance will address urgent health needs in South Africa to overcome the Covid-19 pandemic and help mitigate socio-economic impacts on the most vulnerable populations,\u201d said Xian Zhu, NDB VP and chief operations officer.<\/p>\n
\u201cSuch focus of the Bank\u2019s financing is in line with the emergency loans provided by the NDB to China and India earlier this year.\u201d<\/p>\n
The Loan will assist the South African Government in rolling out its healthcare response to the Novel Coronavirus Disease-19 and in providing a social safety net to alleviate the economic impact of the disease containment measures on vulnerable individuals.<\/p>\n
The Program envisages preventing, detecting and responding to the health threat posed by Covid-19, and providing social grants to vulnerable groups affected by measures implemented to prevent and contain the disease.<\/p>\n