Gordhan revelations on Gupta transactions good for markets?
An economist says that the markets will react favourably at some point to the recent news.
CAPE TOWN - The latest development in the Gupta family banking saga involving Finance Minister Pravin Gordha n could send a positive message to ratings agencies.
That's the sentiment of economist Azar Jammine
But other experts are at odds on how the market will respond to the latest developments.
It emerged over the weekend that Minister Gordhan had revealed in court documents that members of the Gupta family and companies they control have been involved in suspicious transactions worth R6.8 billion.
Last week the rand fell sharply after the minister was charged with fraud.
But Jammine says the markets will react favourably at some point to the recent development.
"The extent to which the credit ratings agencies believe that the Treasury can hold its lines on fiscal rectitude in the face of attempts at state capture, and to that extent this latest development, I think in fact reinforces the view that they can hold the lines."