Debt relief: 'Poorest of the poor will pay a heavy price for SA's debt forgiveness legislation'

19.8.2019

OPINION - Debt relief: 'Poorest of the poor will pay a heavy price for SA's debt forgiveness legislation' | Fin24

What kind of message are we sending to the holders of South African bonds, the World Bank and the ratings agencies when this country is in desperate need of foreign direct investment to create jobs and to help grow the economy.

We are already saddled with the hugely negative perception that the state is planning to expropriate land without compensation. Writing off loans belonging to banks and other financial institutions albeit under strict conditions, is sending out entirely the wrong message.

Let’s not kid ourselves: South Africa is in deep trouble. With the state’s debt mounting up at an alarming rate and consumer debt at an all-time high, this is not the time to play populist politics with our financial systems.

Read more: News24

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