Kganyago says prudent economic policies needed to manage our debt

Reserve Bank Governor Lesetja Kganyago says prudent macroeconomic policies are needed to effectively manage South Africa’s debt.

This comes as the issue of debt, and how it affects countries on the African continent, features prominently at this week’s meeting of G20 finance ministers and central bank governors in Cape Town.

The gathering of the Finance Track Meetings of the G20 deals with strategic macroeconomic and global financial stability issues.

Kganyago was speaking on the sidelines of the gathering, “The level of debt relative to the debt of other countries changes the relative risks of South Africa compared to other countries. To that extent depending on where the debt is and whether it is on an upward trajectory, stable or on a downward trajectory, it affects the risk premium that the South African government has to pay.”