Eswatini minister says local banks hold E21 billion in government bonds
Finance Minister Neal Rijkenberg says the E1.6 billion Standard Bank loan is part of a wider borrowing mix, not a sign of local refusals.
Local banks have not refused to lend to the Eswatini government, Finance Minister Neal Rijkenberg has said. Asked whether the government took the E1.6 billion Standard Bank loan because local banks had turned it down, he said local banks hold and participate in about E21 billion in Government Treasury Bill Bonds on the domestic market.
Rijkenberg said external and syndicated loans, including the Standard Bank facility, form part of a financing mix used to fund the budget deficit. He said the government is working towards reducing public debt to 45% and is cleaning up and paying off all outstanding debts.
Senators had questioned how often the government borrows, foreign currency risks, and value for money on projects such as the Sikhuphe highway. Rijkenberg acknowledged concerns about spending and corruption, saying corruption can be eliminated if proof is forwarded. He also pointed to a USD 48.44 million AfDB budget support loan and a USD 60 million BADEA loan for the Mpakeni Dam.
Why it mattersGovernment borrowing relies on a mix of domestic bonds and external loans, which affects investors holding Eswatini debt.