Rejecting World Bank loan will lead to fiscal crisis - Godongwana
Finance Minister Enoch Godongwana has told Parliament’s finance committee that the country cannot afford to reject the R11.5 billion loan from the World Bank., would plunge the country into a fiscal crisis.
Godongwane, who appeared before the committee on Tuesday, said the country would be dumped into a fiscal crisis without the money.
"If the committee rejects this, we would be detrimental to the work that we are doing,” he told MPs.
"If we are going to the market every week like we are going, who is going to give us the money part of the R547 million we are still raising. We respect parliament but it will plunge us into a fiscal crisis."
Treasury has been slammed in certain quarters for accepting the World Bank Loan.
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The Economic Freedom Fighters (EFF) were first in line to reject the move.
Speaking at the committee, MP Floyd Shivambu urged committee members to reject the Treasury's decision.
"I want to propose that the committee must say that we do not agree with the National Treasury's decision to take a loan from the World Bank and if the loan agreements have not been signed yet, the National Treasury must not proceed to sign those loans.
"They must still engage with other members that will then look into other issues that are immediate, there is no need to take a loan from the World Bank. We must reject the National Treasury's quest to take a loan from the World Bank."
