Swazi Observer - - BUSINESS - By Hlengiwe Ndlovu

AS at 30 June, govern­ment’s debts amounted to E12.9 bil­lion, which is an equiv­a­lent of 20.8 per cent of the coun­try’s GDP.

These fig­ures, which were re­leased by the Cen­tral Bank of Eswa­tini (CBE) in its Re­cent Eco­nomic De­vel­op­ments re­port, re­flect an up­ward growth trend in to­tal pub­lic debt which in­creased from E12.8 bil­lion in May.

Govern­ment’s ex­ter­nal debts stood at E5.2 bil­lion at the end of June, an equiv­a­lent of 8.5 per cent of GDP. This re­flects a four per cent in­crease in govern­ment’s ex­ter­nal debt.

The CBE cites a num­ber of rea­sons for this in­crease, one of which is the slight de­pre­ci­a­tion of the li­lan­geni against the US dol­lar and other ma­jor cur­ren­cies in which the coun­try’s li­a­bil­i­ties are de­nom­i­nated.

Do­mes­tic debt, on the other hand, re­mained the same as in May at E7.7 bil­lion, an equiv­a­lent to 12.3 per cent to GDP.

In the mean­time, the Cen­tral Bank is­sued E150 mil­lion bonds on be­half of govern­ment. The bonds were is­sued in three tranches of E40 mil­lion for five-Year bond; E40 mil­lion for sev­enyear bond; and; E70 mil­lion for 10year bond. Coupon rates for the bonds were fixed at 9.25 per cent, 9.75 per cent and 10.25 per cent, re­spec­tively. Af­ter ex­er­cis­ing the green-shoe op­tion, the amount on of­fer for the five-year bond was re­vised to E120 mil­lion.


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