Swazi economic crisis deepens further

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A delay in the agreed loan from neighbours South Africa has dragged the Swazi economy deeper into uncertainty.

An R2.4 billion loan had been agreed between the African countries earlier this year. However, the money has yet to be exchanged as the state of Swaziland’s finances gets more fragile with each passing day.

The original agreement would have seen the loan exchanged in three separate instalments over the course of August, October and February of next year.

The fact that the funds have not been forthcoming means outstanding Swazi debts are not being paid.

The delay is believed to be due to the fact that both Governments have not yet signed up to a Memorandum of Understanding (MOU) regarding the loan. Martin Dlamini, the CBS governor, was keen to state that aside from that issue everything else is in place to proceed.

“The signing of the MOU is a political issue I’m not conversant with. Otherwise the central bank is ready,” said Dlamini.

Business and education are two of the sectors which have been hit particularly hard by the ongoing crisis. Several schools have now failed to open on time and the opening of a new University has also been delayed as a result of continuing uncertainty.

In the business world, the Government have been unable to pay suppliers who are already in arrears with several financial institutions. These kinds of problems cannot go on for much longer.

Transferring money to Swaziland

If you are looking to invest in Swaziland, think carefully about how you will be transferring money to Swaziland. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to Swaziland– which you will inevitably have to do if you are looking to make a property investment - be sure to compare the market before you buy your overseas currency.

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Swazi economic crisis deepens further

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