- Gordhan believes SA could avoid a credit rating downgrade next week
- After Gordhan's boot out of the cabinet three people have resigned from their Treasury positions
- SA's status has been hanging in the air after Michael Sachs resigned as Treasury head
Former Finance Minister Pravin Gordhan is optimistic that South Africa has the possibility of avoiding a credit rating downgrade when international agencies Moody’s Investors Service and S&P Global Ratings release their ratings of its sovereign debt next week.
SA is at risk of falling further into junk status and being removed from leading global bond indices. Some economists this is inescapable, especially after Micheal Sachs resigned as National Treasury’s head of budget, as well as push from Zuma for free higher education.
After Pravin was booted out of his position at the last cabinet reshuffle, Sachs has been the third person to resign as a senior official in 2017.
Lungiza Fuzile, Treasury’s director-general, and Andrew Donaldson, the head of state technical advisory centre attached to the Treasury, both quit a couple of months ago.
Briefly.co.za learned from Business Live that in an interview yesterday Gordhan said that while we might have perceptions of state capture, he wants to submit that though some of the information is yet to be confirmed, enough of it has been proven true to cause real concern.
"If we can work our way out of that cycle and turn ourselves towards a virtuous cycle over the next three months or so then it’s possible in the first instance to avoid the last downgrade – potentially from Moody’s but secondly create a real round of optimism in the country."
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