THE UGLY

Finweek English Edition - - THE WEEK -

The In­dus­trial Devel­op­ment Cor­po­ra­tion (IDC) is ex­pect­ing an af­ter-tax loss of R1.8bn for the 2015/16 fi­nan­cial year, as the eco­nomic slow­down has led to higher-thanex­pected im­pair­ments, it said in a cor­po­rate plan that was dis­trib­uted to mem­bers of Par­lia­ment. The drop in com­mod­ity prices has hurt the in­sti­tu­tion’s bal­ance sheet, with div­i­dend in­come drop­ping from R3.5bn to R1.8bn. More omi­nously, the IDC – which owns stakes in listed com­pa­nies in­clud­ing ArcelorMit­tal and Kumba Iron Ore – hinted that it may need a bailout if mar­kets don’t im­prove, say­ing it will “en­gage with its share­holder [Gov­ern­ment] to en­sure that it main­tains pru­dent debt-toe­quity ra­tios”, re­ported.

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