Posts tagged with 'junk status'

 

SA in crisis while ANC eats cake, celebrating its 108 years

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The ruling Anc party,was holding a rally in Kimberley celebrating its 108 years.This celebration, which is usually accompanied by a jovial mood of song and dance by party leaders, members and supporters, happens during a time when the country has been plunged into several crises of epidemic proportions. Can the ANC really afford to celebrate? Can it afford to pop Champagne during such difficult times faced by the country?

Poverty levels are accelerating, inequality is deepening, unemployment levels have reached the highest percentage of 29.1% in the last quarter of 2019, the highest recorded by Statistics SA since 2008, with 9.6 million South Africans currently unemployed, 8.6 million of these being black.

The economy is battling to recover from a technical recession, with the country constantly facing a threat of being given junk status by rating agencies.

One of the major crises facing the country is the power utility Eskom, which has struggle
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ANC regime has driven SA to junk status – GDP drops by 0.6% in 3rd quarter – SA is going to struggle to get rid of its economic crisis

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The financial decline that continues in South Africa has given the business sector reason to become more concerned about future business activities in most business areas.

Gross Domestic Product (GDP) declined by 0.6% in the third quarter of 2019, according to the Statistics Service’s report.

Calculated on a year-to-year basis, this is seen as a downturn that the economy has now stagnated, thereby having serious consequences for job creation.

The government hoped for a 1.5% growth rate, but economists warned that the target could not be achieved if sufficient new jobs were not created.

South Africa is now in a junk status phase, and although Moody’s is the only rating agency still trying to hide it, it’s clear that in the next decade the country will struggle to get rid of its economic crisis.

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Junk Status looms – Implementation of NHI will have disastrous consequences for SA economy

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AfriForum today sent a letter to President Cyril Ramaphosa, Finance Minister Tito Mboweni and Minister of Health Zweli Mkhize warning the civil rights organization that the implementation of national health insurance (NHI) could eventually lead to the downgrading of the country’s credit rating to junk status .

This comes after the credit rating agency Moody’s recently downgraded South Africa’s credit rating from a stable to a negative outlook. The reason for this downgrade according to Mood is the bleak growth prospects and growing public debt. In its letter, AfriForum argues that unaffordable, ideological policies such as the NHI will lead to South Africa being downgraded to junk status, as the country simply cannot fund it.

“To continue with the implementation of the NHI will not only be disastrous for the South African economy; it will also inflate government debt to levels that will make it impossible to escape the downgrade to
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S&P Global, which downgraded SA to junk status, warns ANC government that it will not be easy to restore land

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The ratings agency S&P Global, which has legitimately downgraded the country to junk status, since 2017, has warned the ANC regime, saying the path of recovery is not reachable with the clap of fingers.

The agency also points out that the possibility of another downgrade in two weeks is not ruled out because of the dire position in which South Africa finds itself.

The Managing Director of S&P Global Sub-Saharan Africa, Konrad Reuss, was a guest speaker at the Consumer Goods Council Conference in Johannesburg, which was held at the same time as Ramaphosa’s conference where billions of Rand’s promises were made, the bulk of which were made usually does not become reality.

Reuss emphasized that the agency could further downgrade the country in November’s assessment, which would further hamper investors and investment.

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Pull the generator closer and get those candles ready, Eskom #rollingblackouts will be with us shortly

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Eskom expressed its disappointment over the decision of the rating agency Moody’s that further downgraded the bankrupt entity of the state.

The Moody’s Investment Service downgraded Eskom from a B2 to a B3, which means the entity has no confidence in consumers or the rating agency.

With the downgrade, Eskom is brought into line with the poor performance of the ANC’s financial standing, and the distrust it creates at international and national level.

So the possibility exists that with the crisis management system, Eskom can once again start applying the load shedding system to alleviate its financial position, but the country will perish because of the impact it will have on the general financial position.

Late yesterday afternoon, Eskom acknowledged that it could reintroduce short notice “because the system is under pressure”, which is believed to be financial pressure.

 

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SA has a national debt of R3 trillion rand and tax deficit of R53 million

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Following the disappointing mid-term budget speech by Tito Mboweni, the Rand reached its lowest level in weeks. Eskom’s rescue plan has nowhere really figured in either Pravin Gordan’s submission or Mboweni’s budget reason.

The government’s financial situation is rapidly deteriorating with the national debt of R3 trillion and a tax deficit of R53 billion.

Moody’s is therefore expected to downgrade the country to negative from where it currently stands at stable.

However, there are fears that Moody’s will downgrade the country directly to junk status which will affect Government bonds as the Citigroup’s World Government Bond Index contains only investment-grade securities.

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ANC regime threatens financial survival of SA, Government debt increases every day

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The ANC government is extremely dangerous and threatens the financial survival of South Africa, as its eagerness to lend remains unsaturated.

This is the opinion of an economic adviser following the SA Reserve Bank’s announcement that government debt is rising faster than provided by any institution.

The government’s total loan debt has risen to a breathtaking level of just over 58% of the annual budget.

Experts point out that South Africa has now reached the point where Moody’s can no longer turn its head, and even if that were to happen, it is an undeniable reality that the country has landed deep into the abyss of being subjected to junk status, and may not be coming out of it again soon.

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Taxpayers will now have to bailout the Ramaphosa regime after Moody lost patience with SA’s poor economic situation and proposes a tax increase

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The poor economic conditions, unemployment, little foreign interest, the land grab program, Eskom and other entities’ financial inability are all reasons why the country is in such a mess.

Moody’s has pointed out to the ANC-regime that it will have to raise taxes to fix the mess at Eskom, which is the first step to a series of tax hikes.

With the SABC, Denel, SAL, Eskom, and several other entities failing to be a profitable industry as it was years ago, the regime is pushing to raise taxes.

The poor decision to launch a National Health Plan while the country is in junk status is considered to be one of the stupidest decisions the Ramaphosa regime has yet made, which will also lead to astronomical increases in taxes.

Moving out of professional corps such as doctors, nursing staff, lawyers and others is the strongest indication that the country is heading for an enormous crisis that cannot be reversed.

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Economic recession awaits SA due to poor performance of the rand and begging mentality of state entities

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South Africa’s economy is plunging into an abyss, and the recession looms on the doorstep of SA’s door.

This is the opinion of an expert in Pretoria following the extremely poor performance of the rand and the begging mentality of state-controlled companies.

The latest plea from the SA Airways, asking the ANC-regime for a R4 billion bailout, will put the country in a recession, if granted, and will force Moody to downgrade the country to junk status.

Economists warn that SA Airways will not rise from its financial difficulties even if a bailout is received, and will eventually have to be sold due to mismanagement by incompetent chief officers appointed.

-Read the original article in Afrikaans on Die Vryburger
This report does not necessarily reflects the opinion of SA-news.

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Junk status winks for Mangaung Metro with liabilities exceeding assets; officials receive generous salaries and cellphone stipends, while levels of service delivery are non-existent

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The ANC-controlled Mangaung Metro faces junk status after Moody’s rating agency said further downgrading would be considered if the municipality do not urgently get its household in order.  

The Bloemfontein municipality is in truth already bankrupt with liabilities exceeding assets of nearly R1bn and with over R6bn of outstanding debt.  In fact, Moody’s indicated on their website that the metro was downgraded to Ba3 status on May 2, 2019.

In their response, the metro says a downgrade won’t affect service delivery and a financial recovery plan is in place. They argue that the weak economy, rising unemployment and increased water and electricity tariffs are the setback to their finances.

Meanwhile, it appears that the metro’s salary bill amounts to about R160 million a month, with a mobile phone stipend of R3’200 for about 70 councillors, each. In terms of debt, business enterprises owe the metro R1,6bn, residents
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Election cost taxpayers billions of rand, SA’s struggling economy has taken a step closer towards junk status

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Apart from the fact that taxpayers had to foot the bill for the state’s expenses, the amount of which is unknown, but has amounted to millions. The recent election has pushed the struggling economy another step closer towards junk status with the tremendous expense of political parties.

The ANC spent more than one billion in its effort to remain the country’s ruler, while the other 47 political parties spent just over one billion rand together.

Political analysts say the waste did not show who convinced voters to vote for another party, and there were few changes, except that the FF Plus strengthened its position considerably, and so did the Malema party.

As if the struggling economy is being taxed even further, the ANC wants President Ramaphosa to boast of his inauguration at the Loftus Versveld rugby stadium where about 45 thousand of his supporters can see it.

Read the original article in Afrikaans on Die Vryburger

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