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Cape Town - If Swaziland defaults on the R2.4bn loan it has secured from South Africa, the money would be recovered from its Southern Africa Customs Union (Sacu) allocations, Deputy President Kgalema Motlanthe said on Thursday.
Replying to questions in the National Council of Provinces, he told members government was hopeful the fiscal conditions imposed on Swaziland would prevent this happening.
"We are hoping that [through] these measures, these conditions imposed on them with regards to governance, as well as fiscal efficiency, they will avoid sinking deeper into the red.
"And therefore that we should not find it necessary to make good this debt - were they to default - by appropriating their allocation from Sacu," Motlanthe said.
Earlier this month, Finance Minister Pravin Gordhan confirmed that Treasury had approved the five-year R2.4bn loan to Swaziland, on condition that the crisis-struck country put in place certain political and governance reforms.
The money was provided by the SA Reserve Bank at a 5.5% interest rate.
"Repayment of the loan will take the form of a debit order against the SA Customs Union's account that is held by the Reserve Bank on behalf of Swaziland," he said at the time.
Motlanthe said the first part of the loan would be released to Swaziland once all agreements were signed.
Replying to questions in the National Council of Provinces, he told members government was hopeful the fiscal conditions imposed on Swaziland would prevent this happening.
"We are hoping that [through] these measures, these conditions imposed on them with regards to governance, as well as fiscal efficiency, they will avoid sinking deeper into the red.
"And therefore that we should not find it necessary to make good this debt - were they to default - by appropriating their allocation from Sacu," Motlanthe said.
Earlier this month, Finance Minister Pravin Gordhan confirmed that Treasury had approved the five-year R2.4bn loan to Swaziland, on condition that the crisis-struck country put in place certain political and governance reforms.
The money was provided by the SA Reserve Bank at a 5.5% interest rate.
"Repayment of the loan will take the form of a debit order against the SA Customs Union's account that is held by the Reserve Bank on behalf of Swaziland," he said at the time.
Motlanthe said the first part of the loan would be released to Swaziland once all agreements were signed.
