Gigaba: Downgrades had minimal impact on Govt Pension Fund
However, Malusi Gigaba says the Public Investment Corporation has warned the probability of more downgrades for rand denominated debt into junk territory remains high.
His statement was in response to a parliamentary question posed by the Democratic Alliance (DA).
In his reply, Gigaba explains the performance of the Government Employees Pension Fund has not suffered following the downgrades.
That’s according to the Public Investment Corporation (PIC), which manages the fund’s assets valued at R1.6 trillion.
However, Gigaba says the PIC has warned the probability of more downgrades for rand denominated debt into junk territory remains high. The view is brought about by sluggish economic growth and troubling business confidence.
Gigaba adds strategies to mitigate the effects of further downgrades have not been implemented yet.
(Edited by Zamangwane Shange)