LETTER: Risk-sharing approach to bonds may be what SA needs
Interest linked to GDP growth may be attractive to both SA and, for instance, China, which is keen to participate in African development
07 December 2020 - 17:03
A recent Economist leader described new types of government bonds issued by developing countries to foreign parties where the interest rate is linked to underlying economic conditions. For example, the rate could be linked to GDP growth.
This risk-sharing approach could be what SA needs. After all, we do need funds for investment in infrastructure. Appropriate investment should raise GDP. Interest linked to GDP growth may be attractive to both SA and, say, China, which is keen to participate in African development...
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