BANKS. Companies borrow big.

(From Financial Mail)

Byline: Heather Formby

BANKS Companies borrow big The borrowing boom continues but now it's being driven by companies. Corporate SA has decided that the economic growth of the past four years will continue and are borrowing to cater for increased demand, which means new plant and machinery. Borrowing for black economic empowerment (BEE) and private equity deals, as well as securitisation of debtors books, has also pushed up corporate borrowing figures. The November 2006 DI900s statistics provided to the Reserve Bank by the banks show that corporate borrowing increased by 33,3% to R7,4bn compared with November the year before.

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