SA’s high and rising debt ‘poses risk to financial stability’
Investors are demanding a higher premium to hold SA long-term government bonds given market concerns about the country’s public finances
SA’s high and increasing government debt and debt servicing costs pose risks to financial stability, the Reserve Bank said on Wednesday in its latest financial stability report (FSR), pointing to increased exposure to government debt by financial institutions.
Investors are increasingly demanding a higher premium to hold SA long-term government bonds given long-standing market concerns about the shape of the country’s public finances and debt profile...
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