![\"\"](\"https:\/\/genesisekucalenimedia.com\/edn\/wp-content\/uploads\/2025\/09\/P1-Sub-Lead-Sunday-Eswatini-clears-IMF-debt.Minister-of-Finance-Neal-Rijkenberg.jpg\"){kind=spacer}
\u201cIf that happens, we will be able to settle arrears in Eswatini, and we believe that will be the last of arrears. That is really our ambition,\u201d he said.<\/p>\n
The minister also emphasised that Eswatini has not been accumulating new arrears in recent years.<\/p>\n
\u201cOver the previous seven years, we have been slowly but surely reducing arrears, proving that the financial parameters are in place to ensure we don\u2019t overspend the budget,\u201d he said.<\/p>\n
According to him, fiscal reforms and existing legal frameworks now prevent the government from incurring arrears beyond the approved budget.<\/p>\n
\u201cThe laws are there that prevent us from overspending, and history now shows we have stopped the accumulation of arrears,\u201d he said.<\/p>\n
The World Bank\u2019s approval of the $100 million facility required Eswatini to meet nine prior actions. While Rijkenberg did not recall all of them offhand, he confirmed that reforms were part of the package.<\/p>\n
World Bank documentation indicates that such prior actions typically include measures to strengthen public financial management, increase transparency in debt reporting, and improve fiscal discipline.<\/p>\n
These conditions are designed to ensure that countries avoid slipping back into arrears and maintain a sustainable debt path.<\/p>\n
The minister said the government\u2019s track record of reducing arrears over the past seven years demonstrates progress. He also noted that with the new loans, Eswatini\u2019s cash.<\/p>\n
Worth noting is that Eswatini\u2019s repayment of its IMF loan stands out in a region where many countries continue to carry substantial IMF obligations.<\/p>\n
In Southern Africa, Zambia defaulted on its Eurobond payments in 2020 and continues to work with the IMF on debt restructuring.<\/p>\n
Malawi and Mozambique have ongoing IMF programmes, while South Africa has avoided direct IMF borrowing but faces a growing public debt-to-GDP ratio.<\/p>\n
By clearing its IMF debt, Eswatini gains room to manoeuvre in case of emergencies, even as it turns to longer-term financing for structural needs.<\/p>\n
Analysts note that IMF loans are generally the fastest to access but come with the most demanding repayment schedules, while World Bank and AfDB loans are slower to process but more manageable over time.<\/p>\n
In South Africa, for example, IMF loans have been used sparingly because of the political and economic implications.<\/p>\n
Eswatini\u2019s case highlights a pragmatic choice: using IMF funding in a crisis, but moving swiftly to clear it once conditions stabilise.<\/p>\n
For local businesses, the repayment of IMF debt is less visible than the settlement of arrears. Many companies supplying goods and services to the government have been forced to operate with limited cash flow due to delayed payments.<\/p>\n
Rijkenberg said the new loans before Parliament would ensure that suppliers are paid. \u201cWe believe arrears will be a thing of the past once these loans are approved and paid out,\u201d he said.<\/p>\n
The minister reiterated that the government has avoided overspending in recent years, which should prevent arrears from recurring.
\u201cHistory has now also shown over the last period that we have stopped the accumulation of arrears,\u201d he said.<\/p>\n
Eswatini\u2019s decision to repay the IMF loan while shifting to World Bank and AfDB financing reflects a broader strategy of balancing immediate fiscal pressure with long-term stability.<\/p>\n
Rijkenberg said that maintaining access to IMF facilities for emergencies, while using softer loans for structural needs, provides the government with flexibility.<\/p>\n
\u201cWe plan to leave the IMF as a backup in case of emergencies,\u201d he said.<\/p>\n
At the same time, he stressed that the government remains committed to fiscal discipline.<\/p>\n
\u201cThe laws are there that prevent us from overspending, and history now shows we have stopped the accumulation of arrears,\u201d he said.<\/p>\n
The Minister further said, as Eswatini turns the page on its IMF debt, attention will shift to how effectively the government uses new financing to clear arrears and restore confidence among local businesses.<\/p>\n
The outcome will test whether fiscal reforms and external loans can combine to put the country\u2019s finances on a sustainable path.<\/p>\n","protected":false},"excerpt":{"rendered":"By Delisa Magagula Eswatini has fully repaid its emergency loan to the International Monetary Fund (IMF), marking a…","protected":false},"author":1,"featured_media":4181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[22,23,24,25],"tags":[46,73,48,49,58],"class_list":["post-4176","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eswatini-daily-news","category-finance","category-future","category-national","tag-africa","tag-eswatini","tag-feature","tag-human-interest","tag-national","cs-entry","cs-video-wrap"],"yoast_head":"\n