High public debt drives SA’s risk premium, says Nedbank boss Mike Brown
The government has to borrow an average R2bn daily while foreign appetite for its bonds has fallen
10 August 2023 - 05:00
Nedbank CEO Mike Brown has flagged SA’s high public debt as one of the factors driving up the country’s risk premium and increasing borrowing costs across the economy, with the government having to borrow an average of R2bn a day while foreign appetite for SA bonds has fallen.
Brown was speaking after Nedbank reported earnings growth of 11% for the six months to June, in a difficult economy in which the bank had to hike provisions for bad debts by 57%, offsetting a 22% increase in pre-provision operating profit...
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