Gordhan Gives Assurances On SA Economy

SA has deep and liquid financial markets, which continue to function even during this difficult time of global financial turmoil, the Minister of Finance Pravin Gordhan, the governor of the South African Reserve Bank Gill Marcus and members of the Financial Stability Oversight Committee said on Monday.

The parties earlier held discussions about the possible impact of the US downgrade and the on-going sovereign debt concerns in Europe on SA's financial stability. He following was said:

• "All rating agencies rate SA at an investment grade. Standard and Poor's in particular, affirmed SA's sovereign rating and even revised the rating outlook from negative to stable.
• "These ratings are a testimony to our sound management of the economy, and public finances and demonstrate confidence in our fiscal consolidation measures. Our financial system remains strong, with adequately capitalised financial institutions, supported by a robust regulatory framework.
• "The National Treasury and the Reserve Bank will continue to actively monitor the situation to mitigate any financial stability risks and any adverse short term and long term effects on the broader economy. "
• "We remain confident in the growth forecast and fiscal projections outlined at the time of the budget. These will be updated in October at the time of the Medium Term Budget Policy Statement."

The parties said that in addition, SA would - as a member of G-20 - remain in close contact with other member countries ready to take action to ensure stability and liquidity in financial markets. In the long term, SA notes the need for bold global economic leadership especially in dealing with global financial imbalances. The parties said that government would continue to implement measures to accelerate economic growth and stimulate faster job creation. - BuaNews

Please see the latest 'Hot Topic – Turmoil in financial markets' which explores the recent news that Standard & Poor's has downgraded the US debt rating from AAA to AA+.

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On a lighter note we wish all "women" a peaceful day of remembrance. Please read: Why We Have Women's Day In South Africa