AT the moment, the rate of borrowing is 10.5 per cent. Junk status will have a real effect on everyone with debt.
Looking back to July 1979 the bond rate on property was 10 per cent.
Then April 1980 it dropped to 9.5 per cent. But not for long.
The apartheid regime was being punished for their policies.
January 1981 – 10.25 per cent, June 1981 – 11.75 per cent, October 1981 – 12.75 per cent, April 1982 – 13.75 per cent, August 1982 – 14 per cent, November 1982 – 15 per cent, October 1983 – 15.5 per cent, February 1984 – 16.25 per cent, August 1984 – 17 per cent, December 1985 – 17.75 per cent, February 1991 – 19 per cent, September 1991- 20 per cent.
After the ANC was unbanned August 1992 – 17.25 per cent and the rate began to drop.
Twelve very hard years of austerity, and history will repeat itself.
It usually does.
Mrs Thompson
Westville
