FRIDAY, 1.30PM
FINANCE Director-General Maria Ramos announced on Thursday she is confident that government will meet its budget deficit forecast of 4% of gross domestic product in the financial year 1997/1998.
She told a Boland Bank economic presentation: “We have known for two or three months which provinces are in trouble and have established a very active form of engagement with them, sometimes on a daily basis.”
She predicted that economic growth is on the “right track” for the year, and said it will probably be 2,5%, which is 0,4% lower than the Gear forecast for the period.
BUSINESS BRIEFS
SUGAR MILL CLOSES
ILLOVO Sugar is to shut down the Glendale sugar mill near Stanger, as it is no longer running profitably. The closure may mean the loss of 220 jobs for mill workers, but cane farmers in the area will not be drastically affected. Cane intended for the Glendale mill will have to be transported to the nearby Gedhow mill, which also belongs to Illovo.
MICKEY MOUSE BONDS
WALT Disney entered the eurorand bond market on Thursday, with a R200-million issue at a 14% coupon. The issue was launched through lead manager ING Barings. Disney is only the thrid US corporate to tap the popular eurorand bond market after GECC and McDonalds.
US BEER GROUP EYES SA
The world’s largest brewer, Anheuser Busch, may soon be entering the South African beer market. Company managers have apparently been scouting in South Africa recently, though no offical confirmation has been made. Anheuser Busch CEO Jack Purnell said on Thursday the company is “continually evaluating opportunities for growth”.