The Congress of South African Trade Unions (Cosatu) has called on the banking sector to lower their interest rates in line with the lowering of the repo rate.
Administrators in charge of South African department store operator Edcon believe there is a reasonable prospect of saving the company after filing for a form of bankruptcy protection in April.
South Africa’s central bank will no longer allow commercial lenders to use debt issued by state-owned Land Bank to meet their capital adequacy requirements as they are longer considered a “high quality liquid asset”.
South Africa’s small and medium-sized businesses will have five years to repay loans taken out under a government scheme to help cope with the coronavirus crisis, the treasury said on Tuesday, announcing keenly-awaited details of the plan.
African leaders, the IMF and the World Bank on Friday appealed for rapid international action to help African countries respond to the coronavirus pandemic that will cause the continent’s economy to shrink by 1.25% in 2020, the worst reading on record.
Ratings agency Moody’s cut its forecast for South Africa’s economy to a 2.5% contraction in 2020, citing the impact of a nationwide, five-week shutdown aimed at limiting the spread of the novel cornavirus.
The Monetary Policy Committe (MPC) of the South African Reserve Bank has cut the repo rate by 100 basis points. This takes the repo rate to 4.25% per annum.
The Reserve bank has issued an instruction to the South African banking community against the payment of dividends to shareholders and bonus payments to executives this year.
Africa’s biggest lender by assets Standard Bank said on Tuesday it would consider guidance from South Africa’s central bank asking lenders not to pay dividends in 2020 as the coronavirus outbreak disrupts economies around the world.
The Reserve Bank has cut its growth forecasts for South Africa, predicting the economy could shrink by as much as 4% in 2020 due to the coronavirus pandemic, the national 21-day lockdown and the recent downgrades by credit rating agencies.