The ratings agency is scheduled to announce its decision on a possible downgrade of SA credit worthiness on March 27.
It has been a bumpy start to 2020 for the South African economy. Within the first few months, the International Monetary Fund slashed the country’s growth forecast for 2020 and 2021 to 0,8% and 1,0% respectively.
Credit ratings are a measure of the creditworthiness of the government’s ability to pay back borrowed money. The ratings are important because they influence the cost of borrowing for a country. If a country is likely to default then creditors will charge higher interest rates. If the country’s credit rating is downgraded to junk, then the credit ratings of all the country’s banks will also be downgraded, says Coovadia.
“Government will have less money to spend on crucial social services and it will likely create an even tighter environment for balancing the budget than what we have now,” Ackerman says.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Coronavirus in SA: Not if, but when says expertSouth African Medical Association's Dr Angelique Coetzee believes the virus's arival in South Africa is inevitable.
Read more »
Forced removals at Horizon Deep as curtain falls on beloved soapieTwenty-one years ago South African television viewers were introduced to the impeccable storyline of Isidingo.
Read more »
The Facebook group taking on South Africa’s white right - The Mail & GuardianAn online battle over the 'white genocide' narrative on social media has dangerous real-world consequences.
Read more »
South Africans in China: Repatriation details sketchyIt's unclear when 132 South Africans will be repatriated from China and where they'll be quarantined.
Read more »