Deputy finance minister Masondo defends $1.5bn World Bank loan

THE government's decision to borrow US$1.5 billion (about R27bn) from the World Bank will help grow the economy and not undermine South Africa's sovereignty.

- LOYISO SIDIMBA

Deputy Finance Minister Dr David Masondo yesterday defended the loan, assuring the country that borrowing in itself is not bad.

"The question is, what are you borrowing for? (We are) Borrowing for infrastructure to grow the economy. The second issue is whether you will be able to service your debt," he said.

On Monday, the National Treasury announced that the loan will help unlock key infrastructure bottlenecks, particularly in the energy and freight transport sectors, and also enable inclusive economic growth and foster job creation.

The EFF expressed serious concerns that the National Treasury has borrowed billions in the name of economic reform and stability but failed to ensure that this debt translates into jobs, industrial growth, or public infrastructure benefits.