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Johannesburg Is Stuck in a ‘Debt Doom Loop,’ New Study Shows

Source: Bloomberg

Fiscal Policy & BudgetRegulation & LegislationEnergy Markets & PricesCredit & Bond MarketsSovereign Debt & Ratings

Johannesburg faces a “debt doom loop”: weak collection of outstanding obligations has pushed the city to raise tariffs, which is reducing the number of customers able or willing to pay for services. The study highlights deteriorating payment dynamics that could worsen fiscal sustainability and potentially pressure municipal credit conditions.

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