Gigaba refutes ratings downgrade speculation

The newly launched Brics
New Development Bank's
(NDB) African Regional
Centre (ARC) is not a
way of evading a ratings
downgrade, according to the
Minister of Finance, Malusi
Gigaba.
Speaking to journalists
following the launch of the
ARC last Thursday, Gigaba
commented: “You cannot
evade a ratings grade by
establishing an alternative.”
He pointed out that that
the regional centre was
primarily launched to
implement its infrastructure
objectives and meet other
funding needs.
Gigaba added however
that the regional centre
could potentially help
create a more conducive
environment. “We
appreciate the commitment
by the bank to issue randdenominated
loans because
it will assist a great deal
in terms of the structure
and quality of our debt
and our ability to meet
our debt requirements. We
need to address structural
weaknesses in the economy,”
he said.
CAPTION
President Jacob Zuma flanked by the president of the NDB,
Kundapur Vaman Kamath (left), and finance minister Malusi
Gigaba (right), at the official launch of the African Regional
Centre of the Brics New Development Bank (NDB).
Photo: GCIS