28 July 2015
It would force banks to raise mortgage costs or reduce / withhold loans – Basa.
By Paul Vecchiatto
A draft law that would allow South Africa’s government to expropriate property without having to pay compensation at market prices would undermine the rights of owners and mortgage holders and deter investment, the nation’s banking industry said.
The Expropriation Bill now before Parliament would give the state the right to seize property in the public interest and pay the owner “just and equitable” compensation. President Jacob Zuma’s administration says the measure is necessary to address racial disparities in property ownership dating from white minority rule, which ended in 1994.
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