LETTER: Tie SA’s foreign loans to policy reform
Unless SA makes the necessary reforms, taking on new debt will lead to a painful reckoning
01 July 2020 - 16:12
If nothing else, the emergency budget should have made clear just how serious SA’s debt position is. The finance minister’s image of debt as a ravenous hippopotamus is a salutary, and accurate, one. What SA borrows must be repaid.
Borrowing is a necessary part of economic management, and in times like these a critical one. But unless it is part of a sustainable recovery strategy it will compound rather than alleviate the country’s malaise...
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