Treasury hints Zuma’s free-fees plan may stall after downgrades
The Treasury hints at a phased-in strategy, while S&P opts not to wait for ANC conference and junks SA
The Treasury has strongly hinted President Jacob Zuma’s free-fees plan is being revisited and will be phased in more gradually than initially mooted. A promise to do this and to implement a package of measures to address the budget shortfall appear to have helped to persuade at least one of the ratings agencies to hold fire on a downgrade ahead of the ANC’s elective conference in December and the budget in February. But S&P Global Ratings opted not to wait, downgrading SA’s ratings on Friday. Its view is that whoever wins the ANC’s presidential race will face a similarly tough economic challenge and that measures to tighten the budget further could worsen SA’s growth outlook, at least in the short term. S&P junked SA’s local currency rating and took its foreign currency rating further into junk territory. If you are already a subscriber, please click on the following link below to go to the full article: Downgrade may stall Zuma’s free-fees plan If you would like to subscribe to Bu...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.