S&P downgrade: Finance ministry’s policy resolve firms as it looks to 2018 Budget
Two of the three big global ratings agencies have now given a junk rating to rand-denominated government bonds
The finance ministry will be bold in its budget next year and will take decisive measures to strengthen SA’s fiscal framework after S&P Global Ratings cut the country’s local currency debt to “junk” status. “The 2018 Budget will outline decisive and specific policy measures to strengthen the fiscal framework,” the Treasury said in a statement on Saturday. Economic growth has slowed to near zero in recent years and business and consumer sentiment have plumbed multi-decade lows as political uncertainty weighs on the economy. Infighting within the ANC ahead of its elective conference in December has also sapped investor confidence. “Restoring business and consumer confidence, and catalyzing inclusive growth is the top priority of government. To this end, government is working urgently and diligently on practical steps to provide the necessary policy certainty, environment conducive to investment, and predictability that the country so desperately needs,” the statement read. S&P Global ...
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