IMF Warns On South Africa’s Debt

The International Monetary Fund has issued a warning about South Africa’s rising debt levels.

The Fund’s senior resident representative in the country Montfort Mlachila cautioned that as debt levels reach 60 per cent of economic output South Africa has the highest level of debt in its history and the situation is becoming “uncomfortable”.

“South Africa has the highest level of debt in its history,” he said. “This is actually quite concerning without a doubt ... The public debt trajectory is not favourable and becoming uncomfortable,” Mlachila is quoted as stating. 

The budget deficit has been growing as a result of the need for the state to bailout various state owned entities, notably Eskom which the government has committed to providing with $4.1 billion in additional financial support over the next two years.