South Africa approved a R2.4-billion loan to neighbouring Swaziland, but Finance Minister Pravin Gordhan said on Wednesday that the loan was conditional on certain reforms.
The Swazi government would have to comply with a number of financial, governance and political reforms to receive the loan, he told journalists in Pretoria.
In line with the agreement, the loan would be paid in three tranches, with the first payment set for this month, a second in October and the last for February next year.
The loan would be repaid through a debit order to the Southern Africa Customs Union (Sacu) over a five-year period, Gordhan said.
Swaziland approached South Africa for financial assistance to alleviate its financial crisis. The National Treasury said that the decline in Sacu revenue of more than 60%, the delay in taking steps to adjust spending to the new environment and the lack of fiscal and broader public sector reforms were the main causes of the crisis.
Sacu historically accounts for two-thirds of Swaziland's budget.
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