Africa-Press – Eswatini. The Kingdom of Eswatini has successfully repaid a staggering E2.079 billion loan to the International Monetary Fund (IMF), reinforcing its strong credit standing with international financial institutions.
Minister of Finance Neal Rijkenberg confirmed the repayment, describing it as a critical step in safeguarding Eswatini’s financial credibility. “It is important for Eswatini to remain in the good books of organisations such as the IMF when it comes to our credit history,” he said.
The IMF extended the facility to Eswatini at the height of the COVID-19 pandemic, when the country urgently required resources to respond to the crisis. In record time, the IMF approved a US$110 million loan, equivalent to over E2 billion, within just three weeks.
Rijkenberg noted that securing such a substantial loan so quickly was extraordinary within the global financial system. “Getting a loan of this magnitude from any financial institution within three weeks is rare. It demonstrated the level of trust the IMF has in Eswatini’s ability to manage its finances and honour its commitments,” he explained.
The loan carried a two-year grace period and a two-and-a-half-year repayment window, which allowed Eswatini time to stabilise before repayments commenced. The minister emphasised that government carefully evaluates repayment capacity and loan terms before committing to borrowing.
Building Future Confidence
Rijkenberg highlighted that timely settlement of the IMF loan was not just about clearing a financial obligation but also about strengthening investor confidence and keeping Eswatini eligible for future assistance.
“Maintaining good relations with the IMF means that should we ever face another crisis, we can rely on them to respond swiftly again,” he added.
The IMF funds were used to support healthcare, social welfare, and economic stability during the pandemic. Now, with the debt fully settled, government says its focus will shift to maintaining fiscal discipline and pursuing growth opportunities to reduce reliance on emergency borrowing.
The repayment marks a major milestone in Eswatini’s financial management, reaffirming its commitment to prudent borrowing and timely settlement of obligations.
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