Global Finance Official Website

Payment holidays to cost R20.7 billion: South Africa

Payment holidays to cost R20.7 billion: South Africa

The South African economy, according to experts is not limited to a recession but a full-blown depression with businesses closing down during the lockdown will never reopen coupled with massive unemployment, and the tax contribution made is lost forever. Payment holidays made during the period from April-to-June will cost the economy an extra R20.7 billion in debt for an estimated 1.6 million customers. A recent survey points to the inability of debt repayment with 85 percent of respondents seeking financial, emotional help, or both due to COVID-19. An additional 55 percent need financial assistance but cannot access credit, coupled with 51 percent having no savings to rely on.

Source: IOL