Jacob Zuma’s ‘open attack on Treasury’ likely to alarm ratings agencies
Banking Association of SA warns that changing finance minister and deputy minister ‘raises legitimate concerns about the scope state capture’
Firing a respected finance minister shortly before the major rating agencies are scheduled to give their verdict on SA’s sovereign credit rating is likely to cost this country dearly, several authorities warned on Friday morning. "It must be emphasised that any sovereign downgrade would have a serious impact on banks and the business sector in general. It will also undermine our collective ability to fund social programmes, which will severely and sustainably worsen the lives of the poorest of the poor in our country," Banking Association of SA MD Cas Coovadia said in a statement. Moody’s is scheduled to release its midyear sovereign rating review on SA on April 7 and S&P Global Ratings on June 2. Referring to President Jacob Zuma’s "night of the long knives", which included replacing Pravin Gordhan with Malusi Gigaba as finance minister and Mcebisi Jonas with Sfiso Buthelezi as deputy finance minister, Coovadia said: "The specific change in both finance minister and deputy finance ...
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