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
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
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 SA says
Cancel Eskom’s odious debt to the World BankOPINION: The Medupi power station, if completed, will be the largest coal-fired power plant on Earth, emitting more carbon dioxide than the 143 least-emitting countries.
NEWS ANALYSIS: Lessening the load of government debtAre there ways that domestic savings could bail out the state?
Banks warn new debt-relief law will harm economyHowever, others say estimates of what the bill may cost the economy are overexaggerated, and it will have almost no impact on lenders
Debt-relief bill hits financial services stocks and retailersShares in financial services groups and retailers fell on Friday morning after the president signed the National Credit Amendment Bill into law 🔒