S.Africa’s govt drawdowns rising, pose risks to fiscal position: Moody’s

JOHANNESBURG – Moody’s has warned that South African government drawdowns are rising and represent increasing risks to its fiscal position, a day after Treasury targeted the wealthy with tax hikes in a bid to rein in the budget deficit.

Zuzana Brixiova, a lead analyst for South Africa, said the budget aimed to stabilise the debt-to-GDP ratio but “while government guarantees relative to GDP are also projected to stabilize, their actual drawdowns are rising and represent increasing risks to the government’s fiscal position.”