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Question No. 596

Mr M G Oriani-Ambrosini (Inkatha Freedom Party) to ask the Minister of Finance:
1) How much is the national debt including (a) bonds and (b) contingent liabilities, including (i) credit guarantees and (ii) other unfunded liabilities such as pension payments and unemployment insurance;
2) With reference to the abovementioned liabilities, what is the (a) (i) intended source and (ii) timeframe of repayment, (b) (i) average rate of interest and (ii) maturity date of the aforesaid bonds currently extant and (c) who are the registered holders of the aforesaid extant state bonds and credit guarantees?

Reply:
1. National government debt, provisions and contingent liabilities amount to R844 billion, as shown in table one.

Table 1: Net debt, provisions and contingent liabilities of national government
(R billion)
Short-term loans: 92.4
Domestic long-term loans: 503.4
Foreign long-term loans: 88.5
Gross loan debt (31July 2009): 684.3
Cash balances of the National Revenue Fund: (85.1)
Net loan debt (31 July 2009): 599.2

Provisions (31 March 2009): 57.1
Unpaid subscription to multilateral institutions:
* International Monetary Fund: 23.8
* International Bank for Reconstruction and Development: 14.5
* Multilateral Investment Guarantee Agency: 0.1
* African Development Bank: 10.2
Leave credits (31 March 2008): 8.5

Contingent liabilities (31 March 2009): 187.7
Guarantees: 63.1
Road Accident Fund: 42.5
Claims against government departments (31 March 2008): 10.9
Post retirement medical assistance (31 March 2008): 56.0
Export Credit Insurance Corp. S.A. Ltd. (31 March 2008): 12.7
Unemployment Insurance Fund: 2.4
Other: 0.1

Total: 844.0

More information on provisions and contingent liabilities are provided in the consolidated financial information for the year ended 31 March 2008. Detail on government debt and guarantees are provided in tables 8 (page 168 to 171) and 9 (page 172 to 173) of the 2009 Budget Review (http://www.treasury.gov.za/documents/national%20budget/2009/review/default.aspx).

In respect of national government debt the information is as follows:

2. (a)(i) Budget surpluses and borrowings
a. (ii) The treasury bill portfolio has a term to maturity varying from one day to 364 days. Domestic government bonds and foreign loans have an average term to maturity of 10 years and 7.3 years, respectively. With regard to contingent liabilities it is not possible to list the time frames for repayment as these payments will only be incurred in the event of such contingencies arising.
2. (b)(i) The domestic government bond portfolio's average coupon rate is nine percent while new bonds are issued at 7.7 percent.
2. (b)(ii) See 2.(a)(ii)
2. (c) Mainly pension funds, insurers and banks