⁍ The IMF said the Rapid Financing Instrument (RFI) loan will help fill urgent balance of payments needs from pandemic-caused fiscal pressures.

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⁍ South Africa has recorded more than 400,000 coronavirus cases, the most in Africa, with cases rising to one of the fastest daily rates worldwide in recent weeks.

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⁍ Forecasts are for gross domestic product to shrink by at least 7% this year, and a budget deficit of around 15% of GDP.

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– The International Monetary Fund has approved $4.3 billion in emergency financing for South Africa to help it deal with the economic impact of the deadly coronavirus, Reuters reports. The IMF says the rapid financing instrument loan, which is equal to 100% of South Africa’s quota, will help “fill urgent balance of payments needs from pandemic-caused fiscal pressures,” as well as “limit regional spillovers, and catalyze additional financing from other international financial institutions.” South Africa has seen more than 400,000 cases of the virus, the most in Africa, with cases rising at one of the fastest daily rates worldwide in recent weeks. The country is expected to shrink by at least 7% this year and run a budget deficit of around 15% of GDP. South Africa plans to borrow around $7 billion from international financial institutions to cushion the economic impact of COVID-19 and help struggling businesses and households. Of that $7 billion, the New Development Bank of the BRICS group of nations—of which South Africa is a member—has already approved a $1 billion loan, and the African Development Bank has said it will lend the government roughly 3 billion rand ($304.55 million). Talks with the World Bank are ongoing. “Going forward, our fiscal measures will build on our policy strengths and limit the existing economic vulnerabilities which have been exacerbated by the COVID-19 pandemic,” said Minister of Finance Tito Mboweni.