South Africa: An IMF Loan Is a Generational Debt Trap - Don't Do It Tito!

South African currency
opinion

The suggestion by Finance Minister Tito Mboweni that South Africa may go to the International Monetary Fund for a bailout to help deal with Covid-19 and the current financial crisis is a bad, bad idea.

Not even the current coronavirus pandemic should be used as a guise to approach the International Monetary Fund (IMF) for a loan. The IMF is already an infested, sick body that will give us far more diseases than the current Covid-19 virus. Best to stay at home and far away from Washington DC, which is where the HQ of the IMF is located.

On five previous occasions, we dabbled with this body and on all those occasions we barely made it out alive. Thank God for the various sanitisers and detergents in our arsenal over this period. The last one as you know was in 1993, just months before our first democratic election when the National Party under FW de Klerk borrowed $850-million because they had depleted the fiscus and the coffers were bare.

Fortunately, the democratic government under Mandela repaid the loan by 1998, putting us in a much better position to take our own policy decisions and charting our own way forward. Which...

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