Banks warn new debt-relief law will harm economy
Banking lobby group’s MD says cost of credit will go up, negatively affecting economic growth
16 August 2019 - 18:40
UPDATED 18 August 2019 - 23:22
SA’s new debt-relief law will ratchet up the cost of credit, strangling consumer spending with a devastating effect on an ailing economy, a banking lobby group said.
The comments by the Banking Association SA (Basa) on Friday came a day after President Cyril Ramaphosa signed into law a bill that gives the National Credit Regulator (NCR) powers to write off unsecured loans — which do not need collateral — worth R50,000 for consumers found to be critically indebted and earning no more than R7,500 a month...
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