South Africa’s R2.4-billion loan to Swaziland was yet to be signed as King Mswati III appeared to be reluctant to agree to the conditions, Business Day reported on Tuesday.
South Africa’s treasury confirmed on Monday that no funds had been transferred to Swaziland.
“The loan agreement has not been signed by the Swazi authorities and as such no money has been transferred to Swaziland,” treasury spokesperson Bulelwa Boqwana said.
The kingdom was desperate for financial support after losing about 60% of its revenue from the Southern African Customs Union, which had slumped due to slowing trade.
The first instalment of the loan was due to have been transferred to Swaziland in August, with subsequent payments credited in October and February.
As part of the agreement Swaziland had to: align its fiscal policy to International Monetary Fund standards; allow South African experts unhindered access to improve the country’s fiscal and budgetary plans; create platforms to attract foreign direct investment; and institute reforms to stabilise Swaziland’s economy. — Sapa