Banks silent on fate of clients’ home loans – IRR
19 April 2021
The Banking Association of South Africa (BASA) has turned down an invitation from the Institute of Race Relations (IRR) to put forward its views on the implications of the Expropriation Bill for its clients – specifically, what it envisages happening to outstanding home loans on expropriated properties.
In its latest communication, BASA declined the invitation, stating that ‘until the Expropriation Bill is adopted and there is some legislative certainty, we will not comment further’.
Under the terms of the Expropriation Bill, and in view of much of the rhetoric emanating from the political leadership, there exists a very real threat that expropriation could become a widely used mode of acquiring property for the state.
This raises particular concerns about the fate of households liable for repayments on their home loans. Having lost their property, will they be expected to continue servicing the debt?