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Rating agency affirms SA debt outlook as stable

Rating agency affirms SA debt outlook as stable

Government has noted Fitch’s decision to affirm South Africa’s long-term foreign and local currency debt ratings at ‘BB-’ and maintain a stable outlook.

According to Fitch, South Africa’s credit rating is constrained by low real gross domestic product (GDP) growth hampered by power shortages, high level of inequality, a high government debt-to-GDP ratio, and a modest path of fiscal consolidation.

National Treasury said the ratings are supported by a favourable debt structure with long maturities and denominated mostly in local currency as well as a  credible monetary policy framework.

“Government is implementing urgent measures to reduce load-shedding in the short term and transform the sector through market reforms to achieve long-term energy security.

“Over the medium‐term, the fiscal strategy aims to achieve fiscal sustainability by reducing the budget deficit and stabilising the debt-to-GDP ratio.

“On‐budget allocations for infrastructure and other policy priorities and maintaining a sustainable fiscal stance will support economic growth,” National Treasury said on Monday. – SAnews.gov.za

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Tue, 07/18/2023 – 09:00

Tuesday, July 18, 2023

Government has noted Fitch’s decision to affirm South Africa’s long-term foreign and local currency debt ratings at ‘BB-’ and maintain a stable outlook.

According to Fitch, South Africa’s credit rating is constrained by low real improper domestic product (GDP) growth hampered by power shortages, high level of inequality, a high government debt-to-GDP ratio, and a humble path of fiscal consolidation.

National Treasury said the ratings are supported by a favourable debt structure with long maturities and denominated mostly in local currency as well as a  credible monetary policy framework.

“Government is implementing urgent measures to reduce load-shedding in the short term and transform the sector through market reforms to achieve long-term energy security.

“Over the medium‐term, the fiscal strategy aims to achieve fiscal sustainability by reducing the budget deficit and stabilising the debt-to-GDP ratio.

“On‐budget allocations for infrastructure and other policy priorities and maintaining a sustainable fiscal stance will support economic growth,” National Treasury said on Monday. – SAnews.gov.za

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  1. Satan visits Johannesburg and meets Gatiep.

    \”Do you know who i am?\” Satan asks?

    \”No I dont\” says Gatiep \”Give me a hint\”.

    \”I am the prince of darkness\” says Satan.

    \”My F#K\” yells Gatiep \”You\’re the CEO of Eskom then!\”

  2. I was pretty surprised to learn Elon Musk was born in South Africa

    I thought he was born in Mad-at-gas-car