SA far from debt trap – Gordhan
Cape Town – Government debt will be stabilised over the medium term and South Africa is far from a debt trap, according to the Budget Review.
It states that SA’s deep and liquid domestic captial markets, and its access to international borrowing, continue to provide resources for government’s financing needs. Domestic capital markets will remain the main source of borrowing but over the medium term, government’s borrowing strategy focuses on reducing the risks presented by the sharp increase in loan repayments beginning 2016/17.
Cape Town – Government debt will be stabilised over the medium term and South Africa is far from a debt trap, according to the Budget Review.
It states that SA’s deep and liquid domestic captial markets, and its access to international borrowing, continue to provide resources for government’s financing needs. Domestic capital markets will remain the main source of borrowing but over the medium term, government’s borrowing strategy focuses on reducing the risks presented by the sharp increase in loan repayments beginning 2016/17.
Government’s foreign debt remains low, at 10% of gross loan debt. In 2018/19, gross bond issuance in the domestic market will be the lowest since 2011/12, reflecting the outcome of fiscal consolidation.