The South African Federation of Trade Unions SAFTU has expressed concerns over the World Banks recently approved loan to South Africa.
The labour federation has argued that the R26 billion loan will worsen the countrys dependence on foreign creditors.
The loan is intended to support structural reforms which are aimed at improving the countrys infrastructure.
The labour federation says South Africa has already seen the devastating impact of conditionally linked loans, which it has attributed to the creation of ArcelorMittal.
SAFTU General-Secretary SG Zwelinzima Vavi says, We think that this is basically a return to the structural adjustment programmes that are being pushed by the Bretton Woods Institutions, such as the bank itself as well as the World Bank, which is a push for commercialisation and privatisation. Opening of the public infrastructure for the profit of corporate interests. A debt denominated in foreign currency exposes us to massive exchange rate and risk and the austerity budget cuts disguised as fiscal consolidation.
