Falling revenues and a recession mean South Africa will struggle to finance public services, the National Treasury said on Tuesday, as ratings agency Moody’s warned of the risks of rising government debt.
Rating agency Moody’s says the successful implementation of structural reforms along with the reduction in government debt could lead to an upgrade in the country’s sovereign rating.
Finance Minister Tito Mboweni has strongly defended the role of the Treasury and the South African Reserve Bank in the VBS Mutual Bank’s saga.
Ratings agencies will likely review South Africa again next year, after the elections.
South African households are bracing themselves for further devastating economic pressures, as the newly appointed Finance minister Tito Mboweni will be delivering the medium term budget policy statement next week.