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UIF Fund At Risk Of Collapse As Govt Considers Various Uses

SOUTH AFRICA
Local News
  • LabourMin Nxesi warns the state-run Unemployment Insurance Fund (UIF) could collapse if forced to further extend special benefits to those unemployed as a result of Covid.
  • R93bn has been disbursed so far, and R140bn allegedly remains available but is too illiquid for immediate transfer as it is held in bond, stock & property investments.
  • 1.5m regular employment claims remain in the pipeline and risk going unfulfilled if special benefits are extended - Business Tech
  • ANC has also proposed using the UIF & Compensation Fund (R225bn combined) as part of the 'innovative ideas' to reduce Eskom's R484bn in debt, among other older ideas such as moving ~R325bn on the Govts balance sheet and prescribed assets - BizNews
  • CommunicationsMin to announce decision on planned SABC retrenchments today. Their position most likely remains that, without any alternatives suggested by unions, the retrenchments will go ahead - SABC News
  • SA's largest pension fund (R1.8tn) has reduced its exposure by ~R20.5bn to SOE debt including Eskom, Transnet & SANRAL.
  • Cites a deterioration in SOE credit ratings and poor management - DailyMaverick
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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