IMF fears SA banks hold too much government debt
Monetary fund makes recommendations to enhance domestic financial sector’s regulatory, supervisory and policy environment
17 February 2022 - 17:00
UPDATED 27 March 2022 - 18:35
The International Monetary Fund (IMF) has warned against SA banks holding too much government debt, saying this increasing nexus between the government and the financial sector poses a growing risk to financial stability.
The government’s total gross loan debt was projected in the medium-term budget policy statement to rise from R4.3-trillion in 2021/2022 to R5.5-trillion in 2024/2025. But finance minister Enoch Godongwana could produce improved numbers when he tables the 2022/2023 budget in parliament next Wednesday due to the commodity price boom and the tax bonanza flowing from that...
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