National Treasury says the R11-billion Development Policy loan would save Government a lot of money in the long run.
Treasury also says there will be no third party who earns commission on the loan obtained from the World Bank.
Treasury’s Head: Asset and Liability, Dr Duncan Pieterse says proper negotiations ensured that the Development Policy loan comes with highly favourable concessions.
The loan comes with lower repayments as well as a 3-year repayment holiday.
Pieterse says the loan’s risk-benchmark also falls within acceptable levels.
Follow the full Parliamentary briefing here.
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- Godongwana: R11-billion World Bank Development Policy loan obtained under very favourable conditions.
“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
