South African Reserve Bank (SARB) governor Tito Mboweni is transforming creditworthy South Africans into subprime borrowers. With interest rates increasing by 3,5% over the past year, many South Africans now have trouble repaying loans that they were able to service without problems a few months ago. Many homeowners got into trouble even before the interest rate increase earlier this month. One of the biggest auction houses in South Africa, Alliance Group, has reported that it had a 60% increase in foreclosure sales over the past three months, compared with statistics for the same period last year.

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