Euler Hermes predicts that insolvencies in South Africa will increase by around 10%. BDlivehas published an article which cautions that as the outlook for South Africa’s economy becomes bleaker and insolvencies rise, businesses need to pay closer attention to their financial health to avoid getting into bigger trouble. Euler Hermes’ latest outlook 2015-16 report which states that insolvencies in SA will increase roughly 10% is noted. Earlier this month the World Bank noted that the SA economy was “flirting with stagnation, if not recession”, and projected growth of 0.8% for this year.
SA’s credit extension has continued to slow down over the past year and is unlikely to cause any concern for the Reserve Bank in deciding on interest rates. The NCR reports indicating the total value of new credit granted decreased 8.6% from R117.6-billion for the three months ended December 2014 to R107.5-billion for three months ended March 2015. Credit extension in the first quarter of this year is also lower when compared with the R105.6-billion recorded in the first quarter of 2014. Downward trends in recent years have been largely attributable to a slowdown in unsecured lending, which had previously reached worryingly-high levels, according to some commentators.
If you are a looking for an exciting career in credit management you’ve come to the right place. From Learnerships to qualified Credit Specialists, Debtsource is always looking for credit-minded individuals to join our dynamic team. Please send your CV to email@example.com and we will contact you.
The South African Reserve Bank’s (SARB) Monetary Policy Committee (MCP) meeting was held on 23 July 2015 and as it is was widely expected the repo rate increased by 25 basis points, from 5.75%- 6.0%. The interest barometer, as published by Nedbank Strategic Research, considers the factors influencing the decisions of the SARB’s MCP in the statement made relating to the previous decision (26/03/2015) as well as all developments since this meeting. These factors can be categorised in 3 areas with 12 sub categories: The Global economy – contributing 20% The Domestic Economy – contributing 40% Major inflation drivers –contributing 40% Inflation – The Consumer Price Index was published by […]