African Development Bank refused a $150m loan request
On Friday, the African Development Bank refused a $150 million loan request. It made Swaziland found its options narrowing to avoid financial collapse, turning to neighboring South Africa for a bailout. The finance minister said the country has not met conditions set by International Monetary Fund, so The African Development Bank (AfDB) refused Swaziland the loan on Thursday. Majozi Sithole, Finance Minister said to the Times of Swaziland “Our sources say our request will only be considered once we meet the IMF benchmarks.”
On Tuesday, Sithole had urged the nation to pray for the loan’s approval as a sign of how desperately Swaziland needs the cash. The Times said in a comment “This is a catastrophe for the hapless government.” Africa’s last absolute monarchy has little chance of getting loans from international institutions without a “letter of comfort” from the IMF.
Swaziland is now left waiting to see whether neighboring South Africa will offer a bailout to keep the country. On Thursday, South Africa’s foreign ministry declined to specify the amount but confirmed that a loan request had been made. President Jacob Zuma had been asked by King Mswati III for a $1.4-billion (one-billion-euro) loan, which both countries denied, earlier reports had said.
