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$2bn World Bank Loan Still a Possibility; Wage Bill Strategically Omitted from Budget Speech

SOUTH AFRICA
  • SA STILL IN TALKS WITH WORLD BANK ABOUT LOAN
  • SA, WORLD BANK WILL `FIND EACH OTHER' ON LOAN
  • Relates to a $2bn loan offered by the WB on condition that Govt trims the public sector wage bill

On the wage bill in the budget:

  • Mboweni steered clear of explicitly mentioning the wage bill or any inkling of nominal wage freezes, but implicitly hinted at it through commitment to the initial R300bn expenditure cut target
  • Mboweni will likely want to avoid muddying the message of the budget by introducing this touchy subject - and will likely be addressed in ad hoc announcements at a later stage
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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