Home | About | Link        Procurement Jobs | BEE News  

Join for free

Useful Links


« High interest rates a threat to BEE deals | Main | Government's promise »

December 5, 2007

High interest rates threaten BEE deals

Economic commentators say high interest rates are threatening Black Economic Empowerment (BEE) deals. They say BEE deals have been able to survive because of the strength of assets underlying the deals, but if interest rates remain high, some deals will be at risk.


Econometrix Chief Economist Azar Jamine says the financing these deals and the indirect cost can impact negatively on the BEE deals. Jamine says the higher the interest rates go, the greater the risk that asset prices against which the loans are made will fall.

Read More

Posted by StaffWriter at December 5, 2007 11:32 AM