20°C / 22°C
  • Sat
  • 33°C
  • 15°C
  • Sun
  • 33°C
  • 15°C
  • Mon
  • 33°C
  • 19°C
  • Tue
  • 30°C
  • 14°C
  • Wed
  • 27°C
  • 12°C
  • Thu
  • 33°C
  • 15°C
  • Sat
  • 20°C
  • 14°C
  • Sun
  • 20°C
  • 12°C
  • Mon
  • 18°C
  • 12°C
  • Tue
  • 19°C
  • 11°C
  • Wed
  • 17°C
  • 12°C
  • Thu
  • 18°C
  • 11°C
  • Sat
  • 34°C
  • 17°C
  • Sun
  • 35°C
  • 18°C
  • Mon
  • 36°C
  • 18°C
  • Tue
  • 30°C
  • 15°C
  • Wed
  • 30°C
  • 14°C
  • Thu
  • 33°C
  • 17°C
  • Sat
  • 35°C
  • 16°C
  • Sun
  • 35°C
  • 17°C
  • Mon
  • 35°C
  • 17°C
  • Tue
  • 33°C
  • 14°C
  • Wed
  • 30°C
  • 15°C
  • Thu
  • 35°C
  • 17°C
  • Sat
  • 25°C
  • 18°C
  • Sun
  • 29°C
  • 19°C
  • Mon
  • 24°C
  • 16°C
  • Tue
  • 18°C
  • 15°C
  • Wed
  • 27°C
  • 16°C
  • Thu
  • 24°C
  • 18°C
  • Sat
  • 20°C
  • 15°C
  • Sun
  • 21°C
  • 15°C
  • Mon
  • 18°C
  • 13°C
  • Tue
  • 16°C
  • 12°C
  • Wed
  • 18°C
  • 10°C
  • Thu
  • 18°C
  • 13°C
  • Sat
  • 25°C
  • 13°C
  • Sun
  • 21°C
  • 12°C
  • Mon
  • 17°C
  • 10°C
  • Tue
  • 21°C
  • 8°C
  • Wed
  • 16°C
  • 10°C
  • Thu
  • 19°C
  • 10°C
  • Sat
  • 22°C
  • 14°C
  • Sun
  • 18°C
  • 13°C
  • Mon
  • 15°C
  • 11°C
  • Tue
  • 19°C
  • 10°C
  • Wed
  • 15°C
  • 11°C
  • Thu
  • 17°C
  • 11°C
  • Sat
  • 36°C
  • 19°C
  • Sun
  • 36°C
  • 18°C
  • Mon
  • 37°C
  • 23°C
  • Tue
  • 34°C
  • 18°C
  • Wed
  • 32°C
  • 16°C
  • Thu
  • 37°C
  • 18°C
  • Sat
  • 33°C
  • 17°C
  • Sun
  • 33°C
  • 16°C
  • Mon
  • 29°C
  • 14°C
  • Tue
  • 29°C
  • 10°C
  • Wed
  • 30°C
  • 15°C
  • Thu
  • 32°C
  • 11°C
  • Sat
  • 33°C
  • 13°C
  • Sun
  • 34°C
  • 14°C
  • Mon
  • 33°C
  • 15°C
  • Tue
  • 18°C
  • 14°C
  • Wed
  • 33°C
  • 14°C
  • Thu
  • 36°C
  • 16°C
  • Sat
  • 22°C
  • 15°C
  • Sun
  • 21°C
  • 13°C
  • Mon
  • 18°C
  • 10°C
  • Tue
  • 16°C
  • 10°C
  • Wed
  • 18°C
  • 7°C
  • Thu
  • 17°C
  • 11°C

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.

FILE: A man walks past the International Monetary Fund (IMF) headquarters in Washington DC on 5 September, 2018. Picture: AFP

JOHANNESBURG - South Africa’s public debt, which is approaching rating agencies’ red line of 60% of economic output, is reaching uncomfortable levels, an IMF official said on Thursday.

Public finances in Africa’s most industrialised economy are under strain as growth has proved weaker than expected and a clutch of state companies have needed large cash injections.

In July, the government said it would give power utility Eskom R59 billion ($4.1 billion) of additional financial support over the next two years, on top of an already-promised bailout of R230 billion spread over the next decade.

That spooked investors and credit agencies.

Finance Minister Tito Mboweni warned shortly afterwards that this and other bailouts for state firms would almost certainly push up the budget deficit as well as state borrowing, raising the prospect of emergency external loans.

“South Africa has not requested an IMF-supported programme. We do not see a balance of payments need ... so as far as we are concerned there’s no need for South Africa to approach the IMF,” the lender’s senior resident representative in South Africa, Montfort Mlachila, told a conference in Johannesburg.

Mlachila, however, said the debt trajectory, forecast at 55% of GDP in February by treasury but likely to be revised upwards at the October mini-budget, was worrying.

“South Africa has the highest level of debt in its history,” he said. “This is actually quite concerning without a doubt ... The public debt trajectory is not favourable and becoming uncomfortable.”

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus