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February 11, 2009
Bankrupt BEE groups may need bailout
South Africa may need to bail out black economic empowerment (BEE) groups suffering the effects of plunges in metal prices, Cliff Zephyrine of Absa Capital said yesterday.
"BEE ownership transactions have had to be financed largely by the South African banking community," Zephyrine said. "A number of sizeable transactions in the mining industry are now breaching covenants." Black groups that produced their own metals might consider forward selling at fixed prices.
Posted by StaffWriter at February 11, 2009 9:42 AM