International

Covid-19: IMF approves $4.2bn loan to South Africa

The EU said there was a need to put an end to dirty money infiltrating its financial system.

The International Monetary Fund (IMF) has approved a $4.3bn (£3.3bn) loan to South Africa to help it deal with the impact of the coronavirus pandemic which has devastated the economy.

South Africa is the hardest hit country on the continent with nearly 450,000 confirmed Covid-19 cases,

This is the first time in its history the country is receiving an IMF loan.

Finance Minister Tito Mboweni said the money will be used for economic recovery along with Covid-19 interventions, which include supporting the country’s fragile public health system and helping front-line health workers.

The country recently received loans New Development Bank and the African Development Bank totalling nearly $1.3bn to respond to the pandemic.