Bankers and government in talks to brace for coronavirus fallout
Loan defaults by corporates and households expected to increase amid growing risk of sudden economic halt
As the country prepares for the economic onslaught brought about by the coronavirus, President Cyril Ramaphosa, the Reserve Bank, the Treasury and banking executives held a series of engagements at the weekend on the resilience of the financial system.
As the economic ramifications of the virus intensify it can be expected that loan defaults by corporates and households will increase, as the risk of a sudden stop to the economy grows and liquidity dries up amid a shift by companies of investments into cash. ..