AYABONGA CAWE: Reliance on volatile capital and debt markets is Land Bank’s achilles heel
24 May 2020 - 19:33
SA has deep, liquid capital markets. This fact is mostly celebrated, as in multiple global competitiveness indices. In some cases, often obscure but increasingly common, it represents our twin crises of social inequity and material need.
We finance our current account and fiscal deficits through the same liquid markets, and for a while our interest rates (in a context of near zero or even negative real interest rates in many nations) were attractive enough to keep these liquid, albeit at times disastrous, flows coming to SA. In some cases the money leaves as quickly as it arrives...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.