The Banking Association of South Africa and the Association for Savings and Investment South Africa (ASISA) have met with government finance officials to discuss ways to stabilise SOEs, and make them sustainable.
MD of the Banking Association of SA Cas Coovadia says the meeting happened at government's request, saying that SOEs need immediate assistance.
What we said was, let's put a team of technical people, that would look at options the financial sector would have, for funding some of this in the short term, but in a way that it doesn't put the depositors money at risk and in a way that doesn't bring systemic risk to the industry. We need to do it in a way that is acceptable to rating agencies...— Cas Coovadia, MD of the Banking Association of SA
So we have put a couple of teams together to start working on this.— Cas Coovadia, MD of the Banking Association of SA
Coovadia says they will be meeting with the technical team again this week and are hoping to start putting some options on the table in the next six weeks.
To hear the rest of the conversation with Cas Coovadia, listen below:
This article first appeared on CapeTalk : SA's banking sector to lend a helping hand to SOEs