BROKE GOVT BORROWS E461M FROM WBHO, AG THOMAS
MBABANE – Swazi businesses stand to cash in millions of Emalangeni as the cash strapped government resorts to seeking loans from private institutions to finance infrastructural development projects.
One such example is the road infrastructure project where the Ministry of Finance has entered into an agreement with WBHO and AG Thomas for the purpose of raising a loan not exceeding E461 million.
The amount of E461 420 559 has been sought to finance the project of rehabilitation and upgrading of MR16 (Lukhula – Big Bend) and MR7 (Lonhlupheko – Siteki) Roads.
The Act, which authorised Minister of Finance Martin Dlamini, has been cited as the WBHO –AG Thomas Joint Venture Rehabilitation and Upgrading of MR16 and MR7 Road Public Private Partnership Loan Act of 2017.
The act came into force on Friday November 10, 2017 after publication of legal notice number 122.
It should be mentioned that the State is set to repay the loan in 20 monthly instalments at an interest at the prime lending rate plus one per cent per annum of the loan withdrawn and outstanding from time to time.
“The loan shall be charged upon the Consolidated Fund and the assets of the borrower (Swazi Government,” reads the legal notice in part.
It may seem government has started adhering to advice to the effect that the Central Bank of Swaziland (CBS) should refrain from additional budget financing.
On September 1, 2017, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with the Kingdom of Swaziland where it was noted that that strong fiscal adjustment would help release pressures on monetary policy.
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COLANI VILAKATI
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19/05/2016 07:25:09
maphalala george
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17/05/2016 10:36:53
Xolani Simphiwe Mkhatshwa
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17/05/2016 10:22:56
Xolani Simphiwe Mkhatshwa
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17/05/2016 10:09:04
Concerned woman
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17/05/2016 10:08:05
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