Reformed IMF has options with fewer strings attached
Countries such as SA could do well to consider the fund’s coronavirus lending facilities
The Covid-19 pandemic has posed great challenges for developing countries in meeting their sovereign debt payments. While temporary relief in the form of the suspension of debt servicing has been provided to the world’s poorest 70 countries, servicing of sovereign debt remains a big challenge for many emerging economies.
Despite the growing need for external help in tackling this financing gap, there are reservations about potential IMF assistance across many developing countries, including SA. These reservations are largely due to fears that IMF assistance would come with a structural adjustment programme, and hence undermine the nation’s policy autonomy...