The effects 'junk status' will have on ordinary South Africans
5 April 2017
WHAT ordinary South Africans need to do now is look at the down-to-earth effects of the credit rating down grade and how junk status will hurt them in their every-day lives, says the Cape Chamber of Commerce and Industry.
Overseas investors would withdraw their money and the government would have to pay much higher interest rates to borrow money to service and repay its massive loans such as those which Eskom, SAA and other State-owned enterprises had built up. Interest rates would go up and the value of the rand would shrink.
Ms Janine Myburgh, President of the Chamber, said "in plain language this means that the value of our savings and pension funds will go down and the monthly payments on our cars, home loans, credit cards and our medical schemes will go up.
"Everything we import like petrol, clothes, food and medicines will cost more. That will mean less money for food, clothes and school fees."