Treasury simply delaying inevitable SOE bailouts, says Stanlib
Contingency reserve of R27bn announced in the MTBPS is too low given the unrelenting pressure for more bailouts for SOEs, asset manager says
Stanlib says National Treasury is delaying the inevitable by not making additional provisions for SA’s ailing state-owned entities, warning that a contingency reserve won’t be sufficient should the government yield to pressure for further support.
Finance Minister Enoch Godongwana on Wednesday set aside R27bn for a contingency reserve over the medium term to cushion the fiscal framework, but Sylvester Kobo, head of fixed income at the asset management behemoth, said the amount is a big risk heading to the February budget...
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