WASHINGTON — South Africa should seek funding from the International Monetary Fund given its high debt levels, large capital outflows and a potentially deep recession triggered by the rapidly spreading coronavirus pandemic, a financial industry trade group said. The Institute of International Finance said it expected South Africa's economy to contract by 2.5% in 2020, but said waning demand, travel restrictions and pandemic-related closures could lead to a deeper recession. "We believe it is time for South Africa to turn to multilaterals for support," said the group, which was created by 38 banks in leading industrialized countries in response to the debt crisis of the early 1980s. It called South Africa's economic situation "increasingly untenable." Entering a program with the IMF could "bring much-needed funding and help shore up investor confidence," it said.

Source: International New York Times April 01, 2020 03:56 UTC