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Burning Fiscus | Life after debt: How close (or far) is a South African default?

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Finance Minister Tito Mboweni delivered a supplementary budget to address the effects of extra expenditures to fight the Covid-19 pandemic on the national fiscus. (GCIS)
Finance Minister Tito Mboweni delivered a supplementary budget to address the effects of extra expenditures to fight the Covid-19 pandemic on the national fiscus. (GCIS)

However, as much as Mboweni has stressed that South Africa's financial behaviour needs to change urgently if a default on the nation's debt or a sovereign debt crisis is to be avoided, economists say a lot must still go wrong before we are characterised with other defaulting nations.

In 2021, when one thinks of a sovereign debt crisis or a state defaulting on its debt, one of three countries is likely to come to mind: Venezuela, Argentina and Zambia. The fallout when a state is unable to pay its debts or honour its repayment terms does not come from nowhere

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