Finance Minister Enoch Godongwana says the R11-billion Development Policy Loan, recently obtained the from the World Bank, has been obtained under very favourable conditions.

The Minister says the loan would help the country service its current budget deficit.

During a Parliamentary briefing earlier today, Godongwana said Government needs to raise around R630-billion to service its budgetary obligations.

He says Government is raising funds from various sources.

Follow the full Parliamentary briefing here.

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“The World Bank loan has a cheaper interest rate. The Bank also gave us a repayment holiday of 3 years on the loan. So that is the rationale behind taking this loan,” Minister Godongwana responding to questions in @ParliamentofRSA on $750million World Bank Development Policy Loan

— National Treasury (@TreasuryRSA) February 1, 2022

“We need to raise R630bn. The World Bank’s R11bn loan is part of this. We are raising this money from various sources, including Development Finance Institutions such as the New Development Bank and others, not just the World Bank,” Minister Godongwana briefing @ParliamentofRSA

— National Treasury (@TreasuryRSA) February 1, 2022