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National Treasury - Additional information on the national borrowing requirement, the finacing thereof
REPUBLIC OF SOUTH AFRICA - National Treasury
Additional information on the national borrowing requirement, the
financing thereof and on national government debt for the 2012
MTBPS
Tables 3.4 and 3.5 in Chapter 3 of the 2012 Medium-Term Budget Policy
Statement provide a summary of the total national government debt and of the
main budget borrowing requirement and financing thereof. For clarity more detail is
provided in the following tables.
National net borrowing requirement and financing
A total of R10.7 billion in extraordinary receipts are expected in 2012/13, mainly
due to premiums received on new bond issuance and bond switch transactions.
Table 1 National government net borrowing requirement and financing, 2011/12 – 2015/16
2011/12 2012/13 2013/14 2014/15 2015/16
R m illion Outcom e Budget Revised Medium -term estim ates
Main budget balance -147,962 -170,025 -173,031 -177,292 -165,776 -154,747
Extraordinary receipts 5,209 1,200 10,650 4,400 3,300 3,200
Extraordinary payments -1,388 -24 -3,152 -850 – –
Borrow ing requirem ent (-) -144,141 -168,849 -165,533 -173,742 -162,476 -151,547
Dom estic short-term loans (net) 18,725 22,000 22,000 23,000 22,000 21,000
Treasury bills 19,009 22,000 22,000 23,000 22,000 21,000
Corporation for public deposits -284 – – – – –
Dom estic long-term loans (net) 138,501 119,998 126,319 135,923 118,275 117,115
Market loans 154,108 151,367 157,767 157,039 150,879 144,755
Redemptions 1 -15,607 -31,369 -31,448 -21,116 -32,604 -27,640
Foreign loans (net) 9,135 -7,492 -7,114 -3,553 3,701 9,044
Market loans 12,025 4,035 4,055 11,610 11,535 11,430
Arms procurement loan agreements 569 183 183 25 – –
Redemptions (including revaluation -3,459 -11,710 -11,352 -15,188 -7,834 -2,386
of loans) 2
Change in cash and other balances 3 -22,219 34,343 24,328 18,372 18,500 4,388
Cash balances -21,270 30,743 15,828 13,872 14,000 -112
4
Other balances -949 3,600 8,500 4,500 4,500 4,500
Financing 144,141 168,849 165,533 173,742 162,476 151,547
1. Domestic loan redemption figures are net of switches
2. Foreign loan redemptions in 2014/15 are net of anticipated switches
3. A positive change indicates a decrease in cash balances
4. Mainly surrenders of unspent money requested in previous financial years and late requests with regard to
expenditure committed in previous years
Debt issuance in the domestic market will be maintained at current levels. The
switch programme announced at the time of the 2012 Budget which aimed to
reduce redemptions by R15 billion in 2013/14 and R34 billion in 2014/15 will
continue. At the end of September 2012, the switch programme had already
reduced redemptions in 2013/14 by R12.3 billion and by R19.3 billion in 2014/15.
There are currently no plans for switches to reduce redemptions in 2015/16.
During 2012/13, forward exchange contracts entered into by the Reserve Bank will
be settled using rand balances available resulting in higher foreign currency
balances. These higher foreign balances will be utilised in 2013/14 to meet part of
government’s foreign currency commitments.
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Table 2 Change in cash balances, 2011/12 – 2015/16
2011/12 2012/13 2013/14 2014/15 2015/16
R m illion Outcom e Budget Revised Medium -term estim ates
Rand currency
Opening balance 111,413 129,425 130,450 111,837 111,157 97,157
Cash utilised for domestic funding 19,037 -20,365 -18,613 -680 -14,000 -
Closing balance 130,450 -109,060 111,837 111,157 97,157 97,157
Of which:
Tax and loan accounts 63,293 41,903 44,680 44,000 30,000 30,000
Sterilisation deposits 67,157 67,157 67,157 67,157 67,157 67,157
Change in cash balance 1 -19,037 20,365 18,613 680 14,000 -
(opening less closing balance)
Foreign currency2
Opening balance 62,143 65,287 64,376 67,161 53,969 53,969
Domestic foreign exchange purchases 3 2,444 8,352 19,488 - 5,075 -
International borrow ing 12,594 4,218 4,238 11,635 11,535 11,430
Cash utilised for foreign funding -12,805 -22,948 -20,941 -24,827 -16,610 -11,318
Closing balance 64,376 54,909 67,161 53,969 53,969 54,081
US$ equivalent 8,804 7,624 9,160 7,500 7,500 7,514
Change in cash balance 1 -2,233 10,378 -2,785 13,192 - -112
(opening less closing balance)
Total change in cash balances 1 -21,270 30,743 15,828 13,872 14,000 -112
Total closing cash balance 194,826 163,969 178,998 165,126 151,126 151,238
1. A negative value indicates an increase in cash balances and a positive value indicates that cash is utilised to finance
part of the borrowing requirement
2. Rand values at which foreign currency was purchased or borrowed
3. Foreign currency purchased in the spot market and obtained from the settlement of forward exchange contracts entered
into by the South African Reserve Bank to sterilise sizable foreign direct investment flows
National government's debt portfolio
Net domestic and foreign loan debt is shown in the table below.
Table 3 Total national government debt, 2009/10 – 2015/16
As at 31 March 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
R billion Outcom e Estim ate Medium -term estim ates
Dom estic debt
Gross loan debt1 705.5 892.7 1,070.9 1,237.1 1,416.7 1,582.4 1,748.5
Cash balances -106.6 -111.4 -130.5 -111.8 -111.2 -97.2 -97.2
Net loan debt2 598.9 781.3 940.5 1,125.3 1,305.5 1,485.2 1,651.3
Foreign debt
Gross loan debt1 99.5 97.9 116.9 114.8 105.4 108.1 115.9
Cash balances 3 -25.3 -58.8 -67.6 -74.1 -58.1 -57.7 -57.3
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Net loan debt 74.2 39.1 49.3 40.7 47.3 50.4 58.6
Total gross loan debt 805.0 990.6 1,187.8 1,351.9 1,522.1 1,690.5 1,864.4
Total net loan debt 673.1 820.4 989.7 1,166.0 1,352.8 1,535.6 1,709.9
As percentage of GDP:
Total gross loan debt 33.0% 36.0% 39.4% 41.3% 42.4% 42.7% 42.7%
Total net loan debt 27.6% 29.8% 32.8% 35.7% 37.7% 38.8% 39.2%
Foreign debt as percentage of:
Gross loan debt 12.4% 9.9% 9.8% 8.5% 6.9% 6.4% 6.2%
Net loan debt 11.0% 4.8% 5.0% 3.5% 3.5% 3.3% 3.4%
1. Forward estimates are based on projections of exchange and inflation rates
2. Net loan debt is calculated with due account of the cash balances of the National Revenue Fund
(bank balances of government's accounts with the Reserve Bank and commercial banks)
3. Foreign currency deposits revaluated at forward estimates of exchange rates
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