SA bond yields are ticking up ahead of finance minister Tito Mboweni’s budget on February 24 as concern about the country’s long-term debt trajectory counters positive global liquidity conditions that have pushed the rand to well below R15/$.
Moody’s Investors Service warned earlier this week that SA’s fiscal challenges could cause debt levels to breach 100% of GDP as early as the 2022 budget. The ratings agency, which has SA on a negative outlook, said it is likely to downgrade the country further if debt pressures worsened faster and lasted longer than it is forecasting...
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