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PUBLIC DEBT SOARS TO E13.8 BILLION

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MBABANE - Preliminary figures indicate that total public debt stood at E13.8 billion, an equivalent of 22.3 per cent of GDP at end of October 2018.
The Central Bank of Eswatini (CBE) reported that this reflected an increase of 1.5 per cent from the revised figure of E13.6 billion recorded in September 2018.


At the end of October 2018, external debt stood at E5.6 billion, an equivalent of 9.0 per cent of GDP.
“This shows that external debt increased by 1.8 per cent over the past month. The increase is mainly a result of a depreciation of the Lilangeni against the US Dollar and other major currencies in which the countries liabilities are denominated,” said CBE.


Allotment


Domestic debt stood at about E8.2 billion at the end of October 2018, equivalent to 13.3 per cent of GDP. Domestic debt increased by 0.5 per cent when compared to September 2018. The marginal increase was a result of increased uptake of the 91 Days Treasury Bills, as the Auction Committee applied the ‘green-shoe option’ which allows allotment of up-to 50 per cent over and above the amount on offer.


The bank also reported that the Plain Vanilla Bond accounts for over 50 per cent of the total domestic debt instruments issued.
This instrument is mainly used for financing general government operations. Treasury Bills, which are used for similar purpose, amount to 30 per cent, while the Suppliers’ and Infrastructure Bonds account for nine per cent and 6.8 per cent, respectively.


 The remainder is made up of Promissory Notes, which have been offered to specific suppliers to government.


Institutions


CBE said while commercial banks continued to dominate participation in government securities on the shorter end of the yield curve, non-bank financial institutions dominate on the longer term securities.
Latest trade data indicated that as at September 2018, Eswatini recorded a merchandise trade deficit of E127.3 million from a surplus of E16.8 million in the previous month.


Exports contracted by 7.8 per cent month-on-month to E2.119 billion while imports narrowed by 1.6 per cent to E2.246 billion. Cumulative year-to-date balance in the merchandise trade amounted to a deficit of E1.374 billion in September 2018.
Miscellaneous edibles continue to be the leading export commodity followed by sugar.

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