[Johannesburg 3rd Reuters]-The International Finance Association (IIF) said that the South African government would not reorganize the state-run electric company Eskom and implement a viable growth plan on the 2nd. ) Announced a report that the ratio could reach 95% by 2024.
The previous day, the Reserve Bank of South Africa (Central Bank) also warned that the government debt-to-GDP ratio, which was less than 30% before the 2008 global financial crisis, has doubled to about 60%. .
The 95% debt forecast is the worst of the four cases shown by the IFF, but in the lowest case it is 70%.
The report pointed out that "the question of South Africa's debt sustainability is increasing."
The IFF estimates that government debt will be boosted by 6 percentage points when the government takes over Eskom's debt. “The key to improving the situation is the implementation of the national growth plan and the blueprint for the reorganization of ESCOM,” he indicated that investors and rating agencies will be paying close attention to the South African budget plan.
Mboweni will announce a mid-term budget plan on the 30th.
