• Submit news
  • Advertise & rates
  • Contact us

Subscribe to industry newsletters

Bizcommunity has over 400 industry contributors and we always welcome further contributions and contributors.
Advertise with us
Advertise & RatesMy Account
Company press officeList company
Recruitment packagesSubmit job ad
Download ratecard
Commercial Law news

Govt may face a R19 billion Sanral tolling-default bill

25 Apr 2012 09:42
The acting director-general of the National Treasury, Andrew Donaldson, said in court papers that tolling on the Gauteng Freeway Improvement Project (GFIP) must go ahead. He warned that if Gauteng tolls don't start on April 30, 2012, that will constitute a default, triggering the immediate repayment of the entire loan.
The government then might have to pay off immediately the full R19 billion it guaranteed in toll road debt, The Star reports.

Donaldson said the consequences for the country could be very serious. "The credit rating of (SA National Roads Agency Limited) Sanral in the money markets in the first instance will be severely affected [and, as a result,] the credit rating of South Africa, and therefore the government's ability to raise sovereign debt, would be in jeopardy." According to The Star, Donaldson said that if a country cannot raise funds because it has been downgraded, "it follows that it cannot meet some of its commitments, which in South Africa's case include such pressing needs as poverty alleviation and reduction of unemployment."

Read the full article on www.iol.co.za.
    
 
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.

Related news