Streaming issues? Report here
volume_up
volume_mute

Up Next: Early Breakfast with Abongile Nzelenzele
See full line-up
Home
arrow_forward
Politics
arrow_forward
Local

Impact of new debt-relief bill will be 'severe'

16 August 2019 2:21 PM
Tags:
Money
Debt
low income earners
debt relief
The National Credit Amendment Bill aims to help indebted consumers earning less that R7,500 per month, restructure their debt.

It's estimated that up to R20bn worth of debt could be written off under the controversial new debt relief bill signed into law by President Cyril Ramaphosa earlier this week.

The National Credit Amendment Bill will include provisions allowing indebted consumers who earn less that R7,500 per month to restructure their debt.

But the bill has been criticised by the banking industry, which says it will have a detrimental impact on the ability of banks to be able to lend to low-income customers.

The economic impact this bill will have is severe.

Cas Coovadia, Managing director - Banking Association of South Africa

Coovadia says while the intention of the government to address over-indebtedness is a valid one, successful debt restructuring methods are already in place.

We have said that we should actively get those up to scale rather than have a different piece of regulation.

Cas Coovadia, Managing director - Banking Association of South Africa

Coovadia says the potential issues created by the introduction of the bill have not been addressed by the government.

The impact of this bill could mean that lending to low-income families will become much more expensive.

Cas Coovadia, Managing director - Banking Association of South Africa

As a result, Coovadia says some banks may choose not to service that particular market, rather than take on the added risk.

Listen to the full interview below:


16 August 2019 2:21 PM
Tags:
Money
Debt
low income earners
debt relief

More from Politics

Condolences pour in for deputy minerals minister Bavelile Hlongwa

14 September 2019 9:34 AM

The Deputy Minister of Mineral Resources died in a car crash on Friday. The details surrounding the crash remain unclear.

Read More arrow_forward

Teacher gives girl pupils a lesson on basic car maintenance

13 September 2019 6:08 PM

A Facebook post has put the Wykeham Collegiate private school for girls in Pietermaritzburg in the limelight.

Read More arrow_forward

[LISTEN] I intend to go back to work, my name must be cleared - Peter Moyo

13 September 2019 5:30 PM

The fired Old Mutual CEO has responded to board chair Trevor Manuel's claims made in a media briefing on Friday.

Read More arrow_forward

Gauteng residents asked to be mindful of depleting dam levels

13 September 2019 4:24 PM

Residents have been urged to adapt accordingly as the Integrated Vaal River System is also negatively impacted by the decline.

Read More arrow_forward

Nelson Chamisa calls on Zimbabweans to forgive Mugabe

13 September 2019 4:07 PM

The MDC president says this is not the time to score 'cheap' political points and that due regard must be given to the statesmen.

Read More arrow_forward

'A day like today indicates how fractured we are as a country' #SandtonShutdown

13 September 2019 1:38 PM

JSE CEO Nicky Newton-King received a memorandum from demonstrators on Friday and says women's demands will not fall on deaf ears.

Read More arrow_forward

'Queer bodies are falling through the cracks in this conversation'

13 September 2019 12:15 PM

Activist Nolwazi Tusini gives her critique of the #SandtonShutdown and the conversation around gender-based violence.

Read More arrow_forward

SA justice system was not weakened by chance, it was systematic - Cele

13 September 2019 9:10 AM

Police Minister says the country needs to move away form moral degeneration and put families first.

Read More arrow_forward

Fact-checking Robert Mugabe's legacy

13 September 2019 8:36 AM

ZimFacts head Cris Chinaka weighs in on the impact of the former Zimbabwean president on the country and its people.

Read More arrow_forward

City of Joburg to extend pointsmen contract for another month

12 September 2019 7:03 PM

MMC Michael Sun says the municipality has to comply with the rules and regulations when giving private operators such a tender.

Read More arrow_forward

More from Local

'Army should only stay on Cape Flats if police have crime intelligence plan'

15 September 2019 9:44 AM

If the SANDF deployment is extended on the Cape Flats, it must be done in conjunction with better policing, an analyst explains.

Read More arrow_forward

Khayelitsha eco hustlers run CT Marathon with trees on their backs

15 September 2019 8:38 AM

Khayelitsha green entrepreneur Siyabulela Sokomani has brought his 'moving forest' to Sanlam Cape Town Marathon for a good cause.

Read More arrow_forward

De Lille remembers Bok legend Chester Williams ahead of funeral service

14 September 2019 8:46 AM

Minister Patricia de Lille has invited the public to pay their final respects to Williams at the Newlands Stadium in Cape Town.

Read More arrow_forward

#SandtonShutdown: Activist says civil society can't fight against GBV alone

13 September 2019 4:02 PM

Hundreds of women gathered outside the JSE in Sandton as early as 3am this morning to demand support from the private sector.

Read More arrow_forward

'Peter Moyo is not required – nor permitted – at work'

13 September 2019 2:32 PM

Old Mutual is not backing down in its fight with fired CEO Peter Moyo. Ray White interviews EWN’s Nthakoana Ngatane.

Read More arrow_forward

Bob Hewitt victims cry foul over parole decision

13 September 2019 2:08 PM

Olivia Jasriel says they were informed on Thursday that Hewitt will be released n the 23 September 2019.

Read More arrow_forward

'Why I broke the silence on Dr Thandi Ndlovu's abuse story'

13 September 2019 1:01 PM

Businesswoman Khanyi Chaba says she spoke out about the abuse of her late friend Dr Thandi Ndlovu in order to honour her legacy.

Read More arrow_forward

YES beneficiaries work in South African clinics to fight HIV/Aids

13 September 2019 10:19 AM

Kgabele Memela says because of the initiative he received an internship at Unlockd.

Read More arrow_forward

City of Cape Town explains why it hiked electricity tariffs

13 September 2019 9:15 AM

Civic pressure group Stop CoCT says it found discrepancies in the tariff increases implemented by the City.

Read More arrow_forward

'Children don't just wake up today and say I'm going to commit a murder'

13 September 2019 8:42 AM

Centre for Child Law project manager Zita Hansungule says children still have the ability to be rehabilitated and reintegrated.

Read More arrow_forward