ON THE MONEY
STUART THEOBALD: Failure to sign Fica amendment bigger threat than downgrades
President Jacob Zuma’s failure to sign the Financial Intelligence Centre Amendment Bill is threatening the financial system
SA has world-class financial market infrastructure. That is why, despite the ratings downgrades, foreign investors will still come. While the yields on our bonds will be higher to reflect the increased risk of the government balance sheet under an untested finance minister, that risk can be properly priced in. Financial markets will continue to work. For now. It is too easy to forget that this top-rated financial markets infrastructure is a major achievement of the Treasury. Its management of public finances, which is what we fear is at risk following the firing of Pravin Gordhan, is important. But the less high-profile task of managing the country’s financial infrastructure is also critical to our ability to attract foreign investors. And that too is at risk. President Jacob Zuma’s failure to sign the Financial Intelligence Centre Amendment Bill is threatening the financial system. The legislation is needed to amend the Financial Intelligence Centre Act (Fica) to bring it into comp...
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