WORLDVIEW: What would the IMF demand if it bailed out SA?

South Africa has not asked for and does not need an IMF bailout. That is true, for now. But things could change. What would it mean if we did?
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By Felicity Duncan

South Africa, the IMF has confirmed, has not sought and does not need an IMF bailout. That is true, for now. But even the most optimistic observers agree that SA needs to work a lot harder in the areas of reform, corruption, and implementation if it's going to pull itself up by its bootstraps.

So, let's imagine that SA doesn't manage to overcome its factional politics and special interests and implement necessary reforms. And let's imagine that, as global growth slows, this failure to act pushes debt higher, to the point where no one wants to lend to SA anymore except at unsustainably high interest rates. And let's imagine that, to keep the lights on at Eskom and public sector workers paid, government is forced to apply to the IMF as the lender of last resort.

___STEADY_PAYWALL___

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