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South Africa already upgraded by bond market as rating firms lag
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Moneyweb
The government has now reversed spending overruns into surpluses, with debt ratios set to decline from the current fiscal year.
That’s a vote of confidence from those who count: bond investors, said Treasury Director-General Duncan Pieterse.
To ensure fiscal sustainability, the government plans to introduce a “principles-based” fiscal rule with spending targets encased in law.
While lower borrowing costs may look like a good time to take on more debt, the government won’t issue foreign bonds opportunistically, Pieterse said.
“Our interest is in delivering on our fiscal targets because we know the response to that is immediate, and the benefits of that are immediate.”