South Africa not to nationalize banks assures Finance Ministry

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South Africa's new Finance Minister, Malusi Gigaba has pledged to keep the country from a third credit downgrade to junk status.

The minister was speaking at a briefing in Pretoria on Wednesday before departing for the World Bank and International Monetary Fund meetings in the United States.

"We are going to meet among others with Moody's‚ only Moody's‚ to give assurance in terms of policy direction of government because we will have an opportunity". "The goal of the meetings is to discuss global economic trends, the global economic outlook and provides us with an opportunity to interact with the various finance ministers from other countries", he said.

Gigaba said during his trip to the USA, he would meet representatives of Moody's Investors Service, "to give assurance in terms of the policy direction of the government".

Gigaba's been telling investors that the country's economy will remain on the course of fiscal discipline and reduce state debt that was set by his predecessor Pravin Gordhan.

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The South African government will not nationalize banks as proposed by an adviser to Finance Minister Malusi Gigaba, the Finance Ministry said on Tuesday.

"So we do believe that ratings agencies understand that".

"The objective is to discuss trends, the global economic outlook and it provides us with an opportunity to interact with finance ministers from other countries", he said.

Gigaba also mentioned that with the imminent departure of Treasury director general Lungisa Fuzile‚ the department would ensure that by the end of May‚ interviews would have been done with potential candidates.

Gigaba went on to say that Malikane's role was to provide the ministry with technical advice, and that as the head of department, he "ultimately called the shots".

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