Fin24

Cape Town seeks R2bn for projects

2012-07-18 09:00

Cape Town - The City of Cape Town wants to raise a R2bn loan from a French development bank to finance a range of its capital projects, it was reported on Wednesday.

The Cape Times reported the loan, funded by L'Agence Française de Développement, could be taken on condition that it be repaid over 15 years and have an interest rate fixed at 9%.

Deputy mayor Ian Neilson said the loan would be used over the next two financial years for a range of capital projects such as water services, roads, refuse collection and sewerage.

The mayoral committee agreed on Tuesday to recommend to the city council that the loan be taken up.

 

Comments
  • lemohang - 2012-07-18 10:17

    It's only R2bn Could it not be funded by one of the big four or jointly that rate of interest is close to what you get locally. Why send money out of the country ?

  • asadpat - 2012-07-18 10:24

    Could it not be raised by the DBSA? Keep the interest rate income in the country, not overseas? Now we see the effects of National Government not allocating the required Grants to the Western Cape:(

  • lerato.kay.3 - 2012-07-18 10:42

    Given that France’s Prime rate is 1% charging Cape Town 9% is just too much. That’s more like prime 8%, it’s not on considering the fact that SA gvt got an impressive credit rating, which will by the way be backing this loan as a guarantor. We need to move away from the belief that everything European is good, why not go local. I'm sure someone is benefiting somewhere, how can you ship away more than 300m interest to France! As usual as long as its not ANC its ok, that's why SA politicians get away with murder literally because they always play people against one another - shame!

      Klaus - 2012-07-18 10:52

      How much of interest is Risk, as no one can trust ANC Government utterances especially regarding to Reduce Provinces Nationalise everything ANC would not honor debt occurred by DP never mind what money was used for

  • Dee - 2012-07-18 11:02

    Better still - The R2.2 billion earmarked for VIP jets should rather be allocated in W.Cape where there is a plan, governance will and ability to invest it in infrastructure development. Alternatively, EduSolutions should refund the country their ill gotten gains to raise this capital.

  • Tokzik - 2012-07-18 13:08

    A portion of that $2Billion donation to the so called IMF firewall would have been sufficient...

  • tommo.too - 2012-07-18 20:43

    Just wait. The ANC will block the loan. They are determined to break the western cape and the DA.

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