Treasury has managed to avoid a debt blowout and reverse a plan to implement big departmental budget cuts by asking the Reserve Bank for help. These are funds in reserve and are meant to offer a buffer and protection to South Africa against local and external economic shocks.
If your finances are not sustainable, that is reflected in your risk premium and, therefore, in your cost of borrowing, and in the ability of the economy to access capital at a cost that allows the economy to grow : National Treasury Director-General Dr Duncan Pieterse.
Treasury Director-General Duncan Pieterse, though, said that borrowing more money was not a sustainable means to stimulate the economy, and it would only worsen the country’s spiralling debt crisis.