"Even if they take my land, I may still have to pay my bond?"​ - Forget It ANC | EFF and S.A. Banks!

South Africa's response to these articles about "having to continue paying bank property bond installments for properties they would no longer own" | "We take your land, but you still pay your bond"
Are South African Banks barking mad? The ANC and EFF are delusional if they think current property owners in South Africa are going to be bullied or forced to continue paying property loans off, for properties they will no longer own the property rights to.

Any bond or property loan contract between South African's and their respective banks will become null and void the minute any bonded property is expropriated without compensation as property ownership of expropriated property shifts over to the State so if the respective banks wish to have these bond loans settled, they will need to get said settlement from the new property owners - i.e. The State ANC and or Ruling Party Governing the Country.

Let me say it again, South Africans will certainly NOT pay for assets they no longer hold the property rights to as there will be no existing or binding financial contract between the S.A. Gov. and the previous property owners to pay anybody anything.  The minute land is expropriated without compensation by the State, this immediately relieves any obligation by the previous property owner, to pay anything to anyone, let alone their banks. The onus will fall on the respective banks to obtain settlement of any outstanding loan for said land/property, from the new self-elected owner - The State - as previous property owners who upheld their end of their contracts with their banks (until the rug was pulled out from under them), will be free from all obligations.

ANC | EFF and the banks are MAD if they think ANY tax paying citizen of S.A. will continue paying for something they no longer own.
Citizens of South Africa will continue to occupy the land/property they are living on free of charge until such time that it becomes illegal to do so or the State approaches dwellers regarding entering into a rental/lease agreement in writing with them - while they deal with the bank and what is owed on the property loan.

Land Expropriation without compensation is illegal in international law. It contravenes a dozen international treaties that South Africa have signed and ratified since the ANC took over, notably those condemning apartheid and as such, it is a principle that is also enshrined in South African domestic law. Section 25 of the Constitution, therefore, cannot be changed to make land expropriation legal as Treaty law is superior law and always applies.

Above argument applies with the ironic twist that any such initiative would result in the ANC being condemned under international law for actions that the world deems as being racist so it cannot be done!

As for the consequences of implementing an illegal policy such as Land Expropriation without compensation in S.A., its economy will crash for the very simple reason that S.A. Government (ANC), will have shown itself to be a thief and no one does business with a thief let alone extends credit to one. A modern economy cannot run without access to the international market, and for that, credit is needed. The Zimbabwean economy, for example, has a 90% unemployment rate and has declined by 70% from what it was during its independence, simply because no one does business with a thief. The international community will immediately take note that South Africa has become a rogue state.

What would happen, however, in terms of South Africa's access to international markets, is of huge concern. South Africa would have signalled that property rights are insecure. That will mean that international investment in South Africa would come to a screeching halt. This is already happening - that is why South Africa is now ranked 7th in global gold mining when it used to be 1st. This is why South Africa has a 30% unemployment rate, 50% of which is made up of its youth.

The response by ANC/EFF could well be: "who cares, we do not need their investment". That may very well be true, however, it is not where the real crisis would occur. South Africa needs access to international financial markets because it has a trade and budget deficit. It needs access to international financial markets to pay for its bloated public sector and to pay social grants to all it's unemployed Citizens. To raise this money, it needs the banks, now this is where the consequences of a policy of expropriation without compensation hits home, (as the nature of banking goes), banks have highly leveraged Balance Sheets, they lend multiples of the assets they actually have. They additionally need to comply with the Basel ratios. If they have a rise in bad debt, this can easily wipe out their Balance Sheets - rendering them bankrupt, leading to their ultimate collapse.

That is not the end of the story, South Africa has seen its black population rise from approximately 2.5m in the mid 19th century, to its current level of 50+m. The 2.5m figure may be considered a sustainable level of black population (without the benefits of colonialism or modern agriculture), however, because only 13% of South Africa is suited for agriculture and only 3% of that is high-quality agricultural land, the vast majority of South African agricultural land requires the application of modern technology and with farming in South Africa being highly capital intensive, farmers depend on bank lending not only to buy their farms but also to provide essential working capital.

So, if the land is expropriated without compensation and banks collapse, who is left to provide the essential working capital mentioned above? And if farms then collapse due to the banks collapsing, due to the consequences of land expropriation mentioned above, up to 95% of the existing black population is at risk of starvation and banks will not be able to access international markets, international lenders will not lend and South Africa then descends into chaos. At this point, the international community will intervene with the military to restore order. As such, South Africa will become yet another Failed State in the traditional African mould."

In conclusion, The SA Gov. | State | ANC | EFF and banks are crazy if they think existing property owners are going to pay for something that does not belong to them. Settlement of property loan facilities automatically transfers to the State and it becomes the banks problem to seek settlements from the State.
Other related and note-worthy reads:
The ANC is the single greatest liability to the country in 2020
A land thief repents
The enemies of property rights
Five key threats and what to do about them
Land EWC may breach international law
De Klerk foundation explodes land myths
Land grabs could make SA look like Venezuela sooner than you think, warns Anthea Jeffery

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