@BraSmoove If facility modalities (qualification requirements etc.) are understood, it becomes apparent the loans are concessional. If overlaps between external & internal shocks are appreciated & public gross financing needs articulated, BoP support from IMF best option.
@BraSmoove another important thing to note, as far as IMF BoP support, it necessitates governments develop a clear plan of how funds will be used & how consolidation will be done post the necessary stimulus in a letter or imtent. Investors see that & are bullish about the country
@BraSmoove I hope you find this somewhat useful. We can, if you want, dive into the nitty gritties of the SA fiscal policy, its link with monetary policy & how the slowdown in global economic activity means a decrease in reserves needed to finance international obligations.
@threadreaderapp kindly unroll
