South African Finance Minister Tito Mboweni warned that a fiscal crisis looms for the nation, which was already in a recession before the global pandemic deepened its economic slowdown, according to a report by Johannesburg-based Fin24.
If domestic banks and institutions were to remain the largest holders of South African bonds, a fiscal crisis could spread to banks and the financial system, Mboweni said during a panel discussion on Friday, the website reported.
Any failure by South Africa to take measures could bring on a crisis as early as 2024, he said, pointing to the economic meltdown experienced in Argentina as an example. His mid-term budget, due later this month, wouldn't be popular as it would “deal with” issues like the heavily indebted national airline and other state-owned enterprises, Mboweni said.
Read more here about the Treasury's warnings over debt
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