Director / Editor: Victor Teboul, Ph.D.

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Is South Africa’s Hunger for Credit Biting Back?

A consumer credit boom in South Africa has trapped millions in swirling debt. The country’s debt problem came to a head in August when the Central Bank and commercial lenders had to rescue African Bank from a flood of bad debts - mostly racked up on risky unsecured loans. The bailout placed a spotlight on the rapid growth of unsecured lending in South Africa. Under apartheid, racial inequality left the majority of South Africans without access to banks. The 1994 transition to...

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