The Banking Association of SA (BASA) issued a warning that should land be “stolen” without compensation that this would lead to further downgrading by rating firms.
According to Pierre Venter of BASA, this will lead to high levels of debt losses and property values will decline and the subsequent disinvestment of investors in order avoid future losses.
In plain english this means banks will suffer losses due to the “theft” of properties because who will be paying the outstanding mortgages on properties (currently R1.6 trillion loans against properties).
Properties are going to decline as in the central parts of cities because who will maintain the property? The ANC government has already shown that it is not strong on any form of maintenance.
Tighter lending measures will also be instituted by banks.
Economists warn that Cyril Ramaphosa is continuing to lead South Africa further into junk status.
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News
