The South African Reserve Bank’s Financial Stability Review out this week shone the spotlight on the risks posed by local banks’ growing holdings of government debt – risks that are only likely to build given the perilous state of the public finances. Elsewhere, the decision by Kenya’s High Court to rule a housing levy unconstitutional strikes a blow to President Ruto’s reform agenda. The question now is whether the government allows a wider budget deficit to pursue its housing policies (which the levy was meant to finance), which would raise further questions about public debt sustainability.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services