Fitch downgrade a vote of no confidence in Gigaba - DA

2017-04-08 14:02
Finance Minister Malusi Gigaba.(Photo: AFP)

Finance Minister Malusi Gigaba.(Photo: AFP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Video

It is a setback but we have no reason to be despondent - Gigaba on ratings downgrade

2017-04-04 13:48

In his briefing following his meeting with Pravin Gordhan, newly-appointed Finance Minister Malusi Gigaba revealed that the government was already aware of S&P's decision to downgrade South Africa to junk status on Friday.WATCH

Cape Town – South Africa’s downgrade by Fitch Ratings agency is a vote of no confidence in new Finance Minister Malusi Gigaba’s ability to hold the fiscal line and stabilise debt, the DA’s David Maynier has said.

"This should come as no surprise given that the minister is trying to convince the ratings agencies that he can hold the fiscal line and implement 'radical economic transformation', which is simply not credible," he said on Saturday.

Earlier this week, S&P downgraded SA to junk status. On Friday, Fitch Ratings followed suit.

Fitch downgraded South Africa’s long-term foreign currency debt and long-term local currency debt to BB+, or "junk status", with a "stable outlook".

Maynier said it was not good enough for the minister to simply concede that the ratings downgrade was a setback.

"The minister needs to roll up his sleeves and get into the fight to avoid further ratings downgrades. The minister’s number one priority should be to avoid the nightmare scenario where massive forced selling of our debt triggers an economic meltdown that will spare nobody, rich or poor." 

Maynier said that to re-establish trust with the ratings agency, the minister, who was sworn in on Friday, March 31, had to show that he was serious about avoiding further downgrades.

Read more on:    da  |  david maynier  |  malusi gigaba  |  economy  |  politics  |  cabinet reshuffle

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
ADVERTORIAL
Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.

/News
Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.