The Inkatha Freedom Party (IFP) believes that the restriction of credit approvals by the country’s banks to household consumers is a sign of how serious the economic challenge in South Africa is.
The IFP in Parliament has expressed deep concern over the economic challenges in South Africa, highlighting the recent surge in banks rejecting credit applications.
Earlier this year, the banks indicated they had turned down about 70% of credit applications. This is the highest since the end of the COVID-19 pandemic.
IFP Member of Parliament Elphus Buthelezi states, “Many households can’t make ends meet, living paycheck to paycheck due to the soaring cost of living.”
The IFP emphasises that citizens supplementing incomes now face a higher risk of defaulting on debt repayments, adding urgency to the economic strain.
With banks tightening credit amid economic uncertainties, the IFP urges policymakers to address the pressing challenges facing South African households.
