CASHFLOW CHALLENGES PROMPT E1.66BN ADVANCE

MBABANE – Government’s financial needs prompted the issuance of a E1.66 billion advance from the Central Bank of Eswatini.  

CBE has disclosed that it issued an advance amounting to E1.66 billion to government in the current financial year in three different tranches of six months maturities.

Wikipedia explains that an advance payment, or simply an advance, is the part of a contractually due sum that is paid or received in advance.
The bank mentioned that domestic debt stood at E10.5 billion at the end of March 2019, an equivalent of 16.02 per cent of GDP.

debt

It was pointed out that domestic debt stock had increased by 36.8 per cent when compared to E7.7 billion recorded at the end of March 2018. The domestic debt portfolio comprises Treasury Bills, Treasury Bonds, Promissory Notes and Private Placements and a Statutory Advance from the Central Bank of Eswatini.

“The increase in domestic debt was mainly driven by government’s financial. During the period, government accessed its line of credit facility with the Central Bank amounting to E1.66 billion. The facility is set to mature at the end of the first half of 2019/20,” said CBE.
The advance, as reflected in the CB annual economic review of 2018/19, was issued in accordance with the Central Bank Order of 1974.

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