/ 21 August 1997

Cote d’Ivoire borrows from Peter to pay Paul

THURSDAY, 3.30PM:

COTE d’IVOIRE is to receive a loan of US$50-million from the World Bank and a $35-million debt-relief grant from the International Development Association (IDA).

The funds are to help Cote d’Ivoire pay off its commercial debts as part of a general debt management strategy to attract private investors.

The grant includes about $10-million from Switzerland and $5-million from the Netherlands. The outstanding amount will be provided by the International Monetary Fund and the French Government.

BUSINESS BRIEFS

OLD MUTUAL TO SEEK LISTING OLD Mutual, SA’s most powerful financial institution, is expected to announce plans on Wednesday for its demutualisation and its intention to seek a listing on the JSE. A mutual company, which is owned by its policyholders, demutualises by shifting ownership to shareholders in the stock market. Rival Sanlam had been expected to initiate such moves first, and some quarters of the market think it unlikely Old Mutual will demutualise.

CONGO TO JOIN SADC? LAURENT Kabila’s Democratic Republic of Congo would like to join the Southern African Development Community (SADC). It is believed that the islands of Madagascar and Seychelles would also like to join.

RECORD GOLD DEMAND WHILE the gold price has languished in the doldrums this year, international demand for the precious metal hit a record high of 723 tons in the second quarter of this year, according to the World Gold Council.