Greylisting would hurt SOEs most, says S&P
It would increase borrowing costs for parastatals whose funding needs are too large for domestic markets
S&P Global Ratings says SA’s potential greylisting by the Financial Action Task Force (FATF), an action that would raise transaction, compliance and interest rate costs for local firms, is likely to hurt state-owned enterprises (SOEs) the most.
Paris-based FATF, an intergovernmental body that assesses countries’ ability to combat illicit financial activity, gave SA until October to come up with a credible plan to address gaps identified in its anti-money laundering and combating the financing of terrorism (AML-CFT) framework. Failure to do so could see SA placed on a greylist of countries seen as being at higher risk of financial crime when the group holds its follow-up review meeting in February 2023...
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