SA’s National Treasury says the $2bn it has committed to the International Monetary Fund’s (IMF’s) more than $430bn firewall fund will be in the form of its foreign reserves‚ and will be drawn down only if needed and only after other resources have been depleted.
South African leaders attending the Group of 20 summit in Los Cabos‚ Mexico‚ announced the commitment on Monday.
The Treasury said the funds would be invested and earn interest‚ and would be drawn down only in emergency circumstances.
“If the funds are drawn down‚ they will ultimately be repaid and they will continue to earn interest over this period‚” Treasury spokesman Jabulani Sikhakhane said.
The multibillion-dollar fund has been set aside in efforts to increase IMF resources in order for the institution to better assist countries distressed by the current global economic conditions‚ made worse by the deterioration of economies in the eurozone.
The resources will be channelled through temporary bilateral loans and note purchase agreements to the IMF’s general resources account.
For More News on G20 Summit follow my tweets : https://twitter.com/#!/MissNiyu