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CBE EXTENDS E500 MILLION ADVANCE TO GOVERNMENT

By Qondile Ntiwane | 2019-03-13

The Central Bank of Eswatini (CBE) extended an additional E500 million advance to government in the month of February.

This is contained in the CBE Recent Economic development report ending January 31. The advance is expected to attract an interest rate equivalent to the prevailing discount rate, which is currently at 6.75 per cent. This advance is meant to help government settle her financial obligations.

Developments

The developments also show that during the month of February, a total of E220 million was raised through private placement in supplier’s bonds while E80 million of the same matured in the month under review.Meanwhile, the outstanding domestic debt as at the end of February stood at E9.83 billion, an equivalent of 15.9 per cent of GDP. This reflects an increase of 6.0 per cent when compared to E9.28 billion recorded in January. The slight increase is due to an advance extended to government as well as issuance of supplier’s bond during the month of February. It was also highlighted that while commercial banks continued to dominate participation in government securities on the shorter end of the yield curve, non-bank financial institutions dominate on the longer term securities.

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