SA grants Swaziland R2.5bn loan

Wednesday, August 3, 2011

Pretoria - South Africa has granted Swaziland a R2.5 billion loan.

"I can confirm the loan. This is a government to government agreement," said Reserve Bank spokesperson Hlengani Mathebula on Wednesday. He added that further details could be obtained from National Treasury.

In June, Treasury refuted claims that it had granted the one absolute monarch on the continent a loan, saying no decision was reached on the matter.

In a short statement, Treasury said Minister Pravin Gordhan "will comment on the Swaziland loan reports" at a briefing scheduled for later today.

It has been reported that Swaziland, which borders South Africa, had a budget deficit of 14.3% of Gross Domestic Product (GDP).