UPDATE 2-South Africa's Treasury says weak growth a threat to fiscal outlook
* Accumulation of debt "unsustainable" - Treasury
* Treasury plans up to $1.5 bln bond this financial year
* Wants to issue more Sukuks to boost liquidity (Adds bond, Sukuk plans, quotes)
By Wendell Roelf
CAPE TOWN, Oct 13 (Reuters) - South Africa's weak economic growth, public-sector wages and financial support for state-owned companies that exceeds their budgets are the three main threats to the country's fiscal outlook, the National Treasury said on Tuesday.
Increased debt while growth is slow would only add to debt-service costs and increase the risk that South Africa's credit rating would be cut below investment grade, the Treasury said in a report to parliament's standing committee on finance that was made public on Tuesday.
"Accumulation of debt in the context of a low-growth environment is unsustainable," the Treasury said, noting that South Africa's debt-service costs are already its fastest growing expenditure.
South Africa had planned to issue $1 billion to $1.5 billion in a bond denominated in a foreign currency by the end of the financial year, although it has enough deposits to service its debt without new funds, the Treasury said.
"We don't have pressure necessarily to issue at a specific time. We also have foreign currency deposits that are enough for us to meet our commitments without necessarily raising money," Director-General of the Treasury Lungisa Fuzile told reporters. Continuación...