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COVID-19: Banks – R540 billion, Poor – R0

By Andile Mngxitama

Do you remember on the 18th of March, when parliamentarians were pledging support to Ramaphosa? They were all happy to go home on full pay.

Remember that the lockdown for all of us started only on the 27th of March. Parliament gave Ramaphosa all the powers to serve white monopoly capital (WMC) – the CR17 donors – under the pretext of fighting COVID-19.

As we speak there is a total take over of the economy by WMC, including massive rescue packages and nothing for the poor.

R540 billion is now available to banks at the instance of the South African Reserve Bank (SARB) to grant loans during the COVID-19 crisis. This is due to two technical changes to the regulations made by SARB’s Prudential Authority), namely:

i. the Liquidity Coverage Ratio (LRC) – which indicates the liquid assets that the bank is required to maintain in relation to its expected outflows – has been lowered from 100% to 80% for the period of the crisis. To this end R240 billion has been released and is now available to the banks for lending.

ii. “the Pillar 2A capital buffer, which is set at 1% of risk-weighted assets” has been lowered zero, in relation to capital relief. In this regard, a further R300 billion is now available to the banks to lend.

Lets get this straight. Ramaphosa gave WMC Half a TRILLION RAND. He gave the poor and the unemployed R0.00. There only about 5 banks in SA. There are 3 million informal sector traders. In the meantime, the opposition parties are hiding under the bed pretending not to see. This is a gangster state by a President who was bought at the ANC Nasrec conference of 2017 for R1 billion by the people he is giving half a trillion to.

Today I will go live on my Facebook page to talk about how the COVID-19 crisis is being used to drive three agendas at the same time, namely:

i. vaccination
ii. 5G
iii. economic monopoly and political control

Let’s engage!

Andile Mngxitama is the President of Black First Land First (BLF), a radical black consciousness organization.

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