Following the domestic recession of 2008/09, South Africa's banks have been coming up with innovative solutions for individuals and companies in debt distress - nursing a number of well-known firms out of insolvency, and saving thousands of homes from the auction floor.

According to Auction Alliance chief executive Rael Levitt, while the incidence of officially recorded insolvencies in the country grew only slightly - by 4.7 percent - in 2009, corporate and individual debt distress was not as mild as reflected in the official statistics.

"In light of the domestic recession in 2008/09, all the South African commercial banks have taken a non-liquidation recovery route when dealing with distressed debt," Levitt said in a statement on Wednesday.
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