Debt-relief law will further weaken economy, warns Banking Association

The industry body representing all registered banks in the country, has warned that the recently promulgated debt-relief bill will send the wrong message to investors and ratings agencies, which will further weaken SA’s already ailing economy.

In a move that has the banking sector rattled, President Cyril Ramaphosa has signed the National Credit Amendment Bill into law, which provides for the extinguishing of the debt of heavily indebted consumers who earn a gross monthly income of no more than R7,500; have unsecured debt amounting to R50,000; and who have been found to be critically indebted by the National Credit Regulator .

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Debt-relief law will further weaken economy, warns Banking AssociationHowever, others say estimates of what the bill may cost the economy are over-exaggerated, and it will have almost no impact on lenders
Source: BDliveSA - 🏆 12. / 63 Read more »

Credit bill means people might escape repaying their debt, banking group warnsBanks will either have to price in higher risks or avoid lending to low-income customers altogether, the Banking Association of SA says
Source: BDliveSA - 🏆 12. / 63 Read more »

Debt-relief bill hits financial services stocks and retailersThe Treasury estimates the debt-relief proposals could result in the write-off of between R13.2bn and R20bn of debt
Source: BDliveSA - 🏆 12. / 63 Read more »

Debt relief for some as controversial Bill signed into lawA lifeline for some consumers who are stuck in a debt trap, but not all South Africans will benefit.
Source: eNCA - 🏆 49. / 51 Read more »

BREAKING NEWS: Ramaphosa signs controversial debt-relief bill into lawThe bill provides for the extinguishing of the debt of heavily indebted consumers who earn a gross monthly income of no more than R7,500
Source: BDliveSA - 🏆 12. / 63 Read more »

South Africa's public debt is 'becoming uncomfortable' - IMF official'South Africa has the highest level of debt in its history,' the International Monetary Fund’s senior resident representative in South Africa, Montfort Mlachila, told a conference in Johannesburg.
Source: ewnupdates - 🏆 30. / 53 Read more »