Johannesburg – South Africa's government recorded a large cash flow deficit of R20.051bn in May due to the issuance of long-term loans, but at least it is down from the deficit of R23.622bn registered in April, the latest Treasury data shows.
It takes the cash balance deficit for the second month of the 2010/11 fiscal year to R43.672bn.
During May 2010, domestic short-term loans (net) increased by R5.105bn while domestic long-term loan issues inclusive of repo's and net of redemptions increased by R14.287bn.
Foreign loan issues, net of redemptions, decreased by R165m mainly due to redemptions on arms procurement loan agreements.
Extraordinary receipts of R298m were recorded mainly in respect of premiums on domestic loan issues and funds received from the SA Special Risk Insurance Association (Sasria) as a result of government liquidating its investment with Sasria.
- I-Net Bridge