A NUMBER of financial institutions in Swaziland have cut their rates following a drop in the prime rate from 15% to 14%. The prime rate cut was announced by the Central Bank of Swaziland in a statement on Monday, and on Tuesday economists in Mbanane said a further cut in Swaziland is possible later in the year. A number of financial institutions in Swaziland said they are expecting the drop, since the trend has been to follow South African institutions. Swazi economists say the downward trend is expected to continue for the next six months, but it might change in the second half of the year.
ANOTHER BANK HALTS CREDIT TO ZIM
THE Credit Guarantee Insurance Company has stopped providing new credit insurance for exports to Zimbabwe because it is worried about the hard currency shortage plaguing the country. The Sunday Times reported that the Credit Guarantee Insurance Company, which is owned by South African banks but partially underwritten by the government, had downgraded Zimbabwe to high risk from medium. The company’s decision follows the suspension last week by First National Bank of the provision of finance for trade with Zimbabwe, compounding the country’s problems as it tackles its worst economic crisis in 20 years.