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South Africa's Nedbank warns land expropriation could spark banking crisis
CAPE TOWN, Sept 7 (Reuters) - South Africa's plans to change
the constitution to allow the expropriation of land without
compensation could hit property prices and trigger a banking
crisis, the chief executive of Nedbank told parliament
President Cyril Ramaphosa announced on Aug. 1 that the
ruling African National Congress (ANC) planned to change the
constitution to allow land to be expropriated without
compensation, as whites still own most of South Africa’s
Speaking to the Constitutional Review Committee, which is
investigating proposed changes to the constitution, Mike Brown
said there was no need to alter the law because the existing
legislation already allowed the state to expropriate property
for land reform purposes.
"As a commercial bank, we are a key role player in funding
the economy and any material impact to property prices would
adversely affect confidence in the banking system and could
trigger a classic banking crisis with significant negative
knock-on effects on the economy," Brown said.
Nedbank is the fourth largest bank in South Africa.
Since the end of apartheid in 1994, the ANC has followed a
"willing-seller, willing-buyer” model under which the government
buys white-owned farms for redistribution to blacks.
Progress has been slow and most South Africans believe
something has to be done to accelerate change, providing it does
not hurt the economy or stoke unrest.
(Writing by Tiisetso Motsoeneng; Editing by Mark Potter)
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