(Adds background)
JOHANNESBURG, June 25 (Reuters) – South Africa and Swaziland
have signed a memorandum of understanding relating to a 2.4
billion rand bailout for Africa’s last absolute monarchy,
although the actual loan agreement has not yet been signed, a
South African official said on Monday.
“The financial authorities of the two countries are still
discussing the matter of the loan,” Treasury spokesman Jabulani
Sikhakhane said.
A South African government source said the MoU signed by the
two countries covered “matters of assistance” relating to the
loan. He gave no more details.
The loan was initially negotiated a year ago when
Swaziland’s government was in the depths of a funding crisis
caused by a slump in revenues from a regional customs union that
have normally accounted for two-thirds of its income.
However, the loan was not immediately signed by Swaziland
because of its objections to Pretoria’s imposition of conditions
relating to political and economic reforms in the southern
African kingdom, where political parties are banned.
(Reporting by Ed Cropley; Editing by Pascal Fletcher)
© Thomson Reuters 2012 All rights reserved
