Swaziland: South Africa Debates Granting Massive Loan

BuaNews (Tshwane)

28 June 2011

Pretoria — National Treasury has refuted claims that it has granted Swaziland a R1.2 billion loan.

In a statement on Tuesday, the ministry said a report had stated that government had indeed issued the loan to the one absolute monarchy on the continent.

“While the South African government is in receipt of a loan request from Swaziland, as confirmed last week, no loan has been agreed to or granted to Swaziland,” said the ministry.

King Mswati III, according to media reports, has asked South Africa for a R10 billion loan. It has been reported that Swaziland, which borders South Africa, had a budget deficit of 14.3 percent of Gross Domestic Product (GDP).

“Technical discussions between South Africa and Swaziland on possible assistance are on-going. They take place in the context of the global recession which resulted in Swaziland losing nearly 60 per cent of its revenue from the Southern African Customs Union (SACU).”

Further communication will be made once the South African government has reached a decision.

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