information:

The Impact of COVID-19 on sovereign debt in South AfricaMinister of Finance, Mr Tito Mboweni, in his 2020 Supplementary Budget Speech on government's plans to dealing with the COVID-19 pandemic said: "Our early projection is that gross national debt will be close to R4 trillion, or 81.8 per cent of GDP by the end of this fiscal year. This is compared to an estimate of R3.56 trillion or 65.6 per cent of GDP projected in February. Without external support, these borrowings will almost entirely consume all of our annual domestic saving, leaving no scope for investment or borrowing by anyone else. For this reason, we need to access new sources of funding. Government intends to borrow about US$7 billion from international finance institutions to support the pandemic response. We must make no mistake, these are still borrowings. They are not a source of revenue. They must

be paid back."

Question 2:

Discuss the advantages and disadvantages of borrowing from international institutions such as the International Monetary Fund (IMF) and the World Bank

2. Discuss the advantages and disadvantages of borrowing from international institutions such as the International Monetary Fund (IMF) and the World Bank. (20%) 3. Collect data on external debt to GDP for the BRICS group i.e. Brazil, Russia, India, China and South Africa from 1999 - 2019. Present the data in ove graph and discuss their evolution. X) Note: Data available from the World Bank Development Indicators Dutaset. http//databank.worldbank.org/datareports.aspx?source=work-development-indicators#