News
South Africa and Africa pushing for more World Bank, IMF reform
He called for more coordination and cooperation among government, business and labor, and a crackdown on corruption, which robs the country of funds that could be used for development.
He also expressed concern about an increasing number of unsecured loans being granted by South African banks. He called on consumers to be careful about spending and borrowing, but said his and other institutions had not yet determined it was time to ask banks to decrease lending.
“There is no crisis in the banking system,” he said. “Let’s be absolutely clear about that.”
Despite his concerns, he said recent steps by international ratings agency to downgrade their outlooks for South Africa were unjustified.
The moves seem “to be an unfortunate casting of European shadows on the South African scene,” he said.
Some have pointed with concern to plans to create a national health system and other policies meant to help South Africa country’s impoverished majority, Gordhan said. He said, “none of that will happen outside a framework of fiscal sustainability.”
Copyright 2012 The Associated Press.
