External debt of the Union of South Africa

 No. E 108a , ,;"F "~' \,,5'1 1 ,r .~- ." his report Is not to be published nor may G. ~.. ". be quoted as representing the Bank's views . 67017 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT EXTERNAL DEBT OF THE UNION OF SOUTH AFRICA December 22, 1950 Economic Department Prepared by: James 1. Lynch  TEE EXTERNAL DEBT OF THE mUON OF SOUTH AF'.d.ICA Table of Contents Description of the External Debt and Its Service Requirements .•..... 1 Debt Record and Service Charges .. 3 Notes on the story of South ~~frican Foreign Debt 5 Table A-l: List of the External Debt of the Union of South Africa, July 31, 1950 Table ..A-2.: List of South African External Debt l;ot Guaranteed by the Dominion Government, July 31, 1950 Table A-3: Estimated Interest and Amortization Payments on the External Debt of the Union of South Africa, 1950-1975 Table A-4: Sin:.dng Fund Frovisions of External Bonded Debt of Union of South 4frica  THE EXTER~TAL DE3T OF TEE mum;- OF SOUTH .'.I.FRICA Description of the ~ernal Debt and Its Service Reauirements The external debt (government and government-gu8~ranteed) of the Union of South .Africa is estimated to be equivalent to:;lc6 million.. In addition. there are held abroad sterling securities of the provinces and munici?alities amounting to the equivalent of $52.3 million (*'18.7 million). There is also a sizeable amount of private non-government guaranteed debts outstanding. The one issue on \vhich information is readily available is a private issue of Sw frs 50 million by the Anglo-American Corporation of South .1.frica. It is believed that this issue is only a part of the total of private loans on uhich there are external payments. Togethor, the national and local issues amount to $I5~ million, 'Vd th private issues in excess of $12 million. A summary of the present debts outstanding is listed below; (See Tables A-I and A-2 for details). The E.."{ternal Debt of the Union of South il-fricn. (in thousands) ------ Description Issue tv!aturity A~OUl1t ~~~-----~--------~~~~~~~~~~-~----~- Outstanding Held in Held in yaupon Date Date Total U. of S.A. London U. S. U.S. Dollar Debt 1;,. I:r $ Surpl,lS Property 4/1/47 4/1/52 $ 1,297 1,297 U. S. Banks 31 I 1950 1953 20~OOO 20,000 Total dollar debt 21,297 Total sterling debt 10,093 'II: Ie,;,':? &~iss franc debt - 3-3f4~ 19,50 1952-53 8,500 ( S",1 s s Banks) Total debts of the Union of South Africa - (direct Or gue,ranteed) Total Provincial and r1unj.ci y al Debts (not guaranteed) 2,864 18,681 52,285 Total Provincial, i;unicil}al and lifational Debts 1.58,011 Private (non-guaranteed debt) 11.616  - 2 - The United States Government loan is a Surplus Pro~erty loan on which payment, at the option of the United States government, may be taken in local currency or property; any unpaid balance, after five years, is to be due ~nd payable in U. S. dollars. It ap'Jears reasonable in vie\'1 of its small size to aasu..l1e that very little of this loan '\11'111 be paid in dollars. The South African government's other dollar obligatioll is a three year revolving credit of $20 million extended by a group of United States ba~cs. ,·Ii th the understanding that the South African government may use it as required and rnE!>y re)tq it any time that a temporary s1J.rplus accumulates. This credit runs for three years and is to be paid by the end of the third year. The sterling securities, (1.21'.1 million) amounting to the equiva,lent of US$75 -9 million, include bonds still outstanding from the security issues of the t\venties and thirties, together 'flith the 1,10 Million sterling 3ts (196.5-67) and:t.S ;:!i~J inn J-J, o~? 1950-'l96R~1 i.:lsue of ITovember 1949, . 31· (196,.67)" w"s made at a time ":Then considerable price and yield fluctua tio;runlere taking place in the sterling market in London; ill consequence, most (85%) of the issues had to be held by the under"lriters since the public only a very small portion of the issue, l':-l.tp'o hr>;"2vcr, too~>:: the market im')1'oved [mel 3.J.~ issue u?nt over ,:mll in 1950. The remainder of the debt is Mainly a loan from a group of Swiss "banks amounting to S<tl frs 36 million (US;8.4 million). This revolving cred! t has been placed at the disposal of the Union to be available for a period cf t,",o, or, if the South African government so desires, three years. The gover~~ent has "J.ndertaken to i8$'1),e permi ts for the import of SliJiss goods to a total value of about St" frs 18 million in each of the yep~rs 1950-1951. Together the obligations of the Union of South Africa amount to $105.7 million In addition to the direct and guaranteed external obligations of the Union of South Africa, there are outstanding sterling obligations of the :provinces and municbalit s of the Union of South .n.frica of "'lh1ch !r1B. 7  - 3 million sterling (Us$52.3 million) are held in London. Details of the in- " dividual issues are s;lmvn in Table ,"--2. There ari.J aJ.so urivate external debts outstanding on ""hieh information, except for the S1:r frs 50 million issue to the Anglo-A~erican Corporation, is lacking. There is no record of any default on the oxternal debts of the Urdon of South 4fricc.'t. The country has consistently met all external charges; these amo1;mtec1 to bet'.1een I,S and 1:::6 million per year from 1923 through 1935. t:le:Jee.k perioo_ of her external debt. Since "chat time, "lith the decline tn the debt, the service char6es have been red~ced materially. On the present outstanding · na t ~ona ~ng i ssues 1 s t er l' "" ;1::-.::;.,_ 0.;.. ~r)7' '11';0 m~ ~ n (p",r'759 u;:;,)· • ~on ) · mill' t · es t· ~'~s . . 0. l.ma,,6 that interest charges amount to the equivalent of about us$2.6 million, and amortization charges to about US$l million. Interest and a~ortization on out- standing provincial and mUl1.icil)al sterling issues, of \vhich LlS. 7 minion ($52.3 million) are he1d in London, is estimated to amount to a further US$3 million a year. Payments on the Anglo-Americau Corj)oration issue a,mount to $233,000 in 1950 and grandually rise to $2.4 million in 1957, the year in i"Thieh the ~~1.9 million amortization yayments begin • .all. the debts above of around ;]165 million call for total interest J!a;r- menta of $5.0 million in 1950, rising to a peak of .1 million i~ 1952, a~d gradually declining to $4.6 million by 1957. Total service payments cannot be given accurately ot·ling to the limited inforr:;ation on the requirements and holdings of the sinldnJ; fumls, (see Table A-4) , but amortization payments in 1953 on the knoi"JU posBiole payments rise to as much P.8 :;;36 T'1iJ.1 io):".L, bringing total service =)ayments to a pec.k of $42 0 0 million in 1953 froD an estimated level of around $7 million in 1950. (For further detail s on Service ?E'.yments see page 4).  ... 4- ESTIHATED UlTEREST AND AMORTIZATION PAYMENTS ON THE EXTERNAL DEBT OF THE mUON OF SOUTH AFRIOA .AND ITS MUNICIPALITIES (Ex_,ressed in thousands of U.S. dollars) Grand total , !2!§1-9-Wt.,Qf Uo o(J~outh Africa ~flrvice payments by currencies on: Y Amount Amount Y ar t- . payments ut- P5wments Debt of Dom. Govtt. Total d.ebt e ou stand,,- i ng· -I' Amort i- za t. J.OruJ In- t eres t T tall J °t· 0 .. ia Amorti- !:.I S n.nl1- za t' g J.on=:.t . . __ -I' In·- t er e at -= T t -11 U S 0 aJ.:!:;.f .. 0 d> 'I' ""_ _ _ _ _ _ _ _ _ _ _ _ _ _ __ T II!'! S.p US 'It!.Lr. • $ ;j;, S W J:' .Lr 1950 165,397 4,869 4,869 101=476 2,482 2,48a 300 2,102 80 300 4,256 313 1951 165.397 1,425 5,937 7,362 101,476 3,318 3~318 600 2,558 160 600 6,13'1 625 1952 168,222 4,773 6,063 10,846 105~726 1,297 3,511 4,808 1,897 2,592 319 1,897 8,165 784 1953 163,449 36,148 5,948 42~096 lQ4~l.j29 28,500 3,511 32,011 20,600 2~592 8,819 20,600 12,212 9;284 1954 127,301 2,533 4,723 7,256 75,929 2,592 2,592 2,592 6,791 465 1955 124,768 540 4,622 5,162 75,929 2,592 2,592 2,592 4,697 465 1956 124,228 4,600 4,600 75~929. 2\592 _2.592 2,592 4,135 465 1957 124,228 7,728 4,600 12,328 75~929 .. - 4\29.11 Z.ji2.Z 2,592 9,923 2,405 1958 116,500 21,437 4,317 25, 754 7.?,9~2 13:994 .2,592. illr 583" 16,586 23,426 2,328 1959 95,062 14,644 3,587 18,231 bl,935 12,70h ',17? l~,R?A 14,876 15,981 2,250 1960 80,419 8,881 3,065 ]1$946 49,211 1,727 1,727 1,727 9.773 2,173 1961 71,538 3,978 2,682 6,660 49,231 1.727 1.727 1,727 4,565 2,095 1962 67,560 2,818 2.502 5,320 49 i 231 1.727 1.727 1,727 3,307 2,013 1963 64,742 8,397 2,381 10,778 49,231 1,727 1,727 1,727 10,778 1964 56,345 3,171 2,073 5,244 49,231 2,217 1~727 3,944 3,944 5,244 1965 53.174 1,357 1,968 3,325 47?014 1,357 1,660 3,017 3,047 3,325 1966 51,817 1,920 1.920 45,657 1,612 1,612 1,612 1,920 1967 51,.817 27,988 1,920 29,908 45,657 27,988 1,612 29,600 29,600 29,908 1968 23,829 940 940 17,669 632 632 632 940 1969 23,829 2,771 940 3.771 17,669 632 632 632 3,711 1970 21,058 17.383 801 18,184 17,669 13,994 632 14,626 14~626 18,184 1971 3,675 142 142 3,675 142 142 142 142 1972 3,675 142 142 3f1675 142 142 142 142 1973 3,675 2,292 142 2,434 3,675 2,292 142 2,434 2,434 2,434 1974 1,383 62 62 1,383 6262 62 .. (2- 1975 1,383 1,.383 62 1,~5 1,383 1,383 g 1,445 .... 1244.5 - _ i;445 - 17 Only the known amortization payments have been included in this Table~ Also, the amortization payments include the issue at its first call or maturity d.ate in gross amount~ However, a substantial portion of these issues is believed to be already held in sinking funds and. therefore the drain will be materially less in certain years than is indicated by the scheduled amortization payment, and more in other years where no amounts have·been includ.ed for the normal yearly amortization of the sterling bond. issues. See Table A-4 for sinking fund information.  - .5 - ITotes on the History of South African Foreign Debt South Africa l s external borrm..ring began in 1822 vlhen the Cape received a loan of I:.12.5, 000 sterling from the Eri tish government. This loan was paid off by 1845 and a neVi loan of J,SO .000 \"las floated in London. A gradual in- crease took ylace in external borrowing and by the time of the establisTh~ent of the Union in 1910, the external debt "was over J,lOO million. The foreign debt thereafter increased to J,132 million by 1916. It declined slightly to lrl23 million by 1921 and rose to an all-time pea,k of about J,166 million in 1932. Since that time the external debt has been gradu- ally paid off and at the beginning of ~lor1d ifar II in 1939 total debts out- standing amounted. to "f,106 million. A further substant la1 reduction took place during i{orld i'1ar II so that by the end of 194.5 only 1.14 million "ms out stand"';' ing, and by the end of 1948, South .Africa had reduced its external debt to about h8 . .5 million net, 1.13.4 million gross. Part of this external debt re- duction came about in the follo\·;il1g manner. In October 1941 a.nd December of 1942 residents in the United Kingdom holding certain South African obligations were ord.ered to turn them over to the British Treasury. These transactions were financed as follows: 1) The South African Reserve Bank furnished sterling required by selling gold to the value of about ~70 million. 2) The bar2t in tUrn took OVer the issues from the British Treasury. 3) The S~uth African Treasury then issued local registered 2-3/4% and 3)) stock, the proceeds of v!hich '-Tere earmarked for buying from the bemk the Union stocks acq,uired by it in London (a portion of proceeds from sale of 3-1/4-;i 12-year loan vras also used). Holders of consolidated stock, domiciled in South Africa, under certain conditions vlere permitted to convert their holdings into Local Stock. Up to June 30, 1948, stocks held. by re sident s of the Unt ted Killgdom had been turned over to the British Treasl~Y in the total amount of ~70.4 million sterlirg e,nd '!lere subsequently turned over to the South African govern-  - 6 - ment. The result of this operation was to offset the external debts by internal issues. At the same time the coupon rate ,res lowered. During 1949 and 19.50 an increase has taken place in the external in- debtedness, ':'lith borro1lring in the London market (loIS milliou), United States banks (l?20 mi1lion) and S1:1itzerland, (Swiss francs 37 mi1lion, equivalent to ;ta• .5 mi1lion). Listed bel01l1 is a Table shollTing changes in the external and internal debts since 1940. Public Debt of the Union of South Africa ___ (in mill ions of S fA. 1)ound~_ March Harch ~1arch i<1arch March March 1'(;,;';. 1940 191.!·6 -12!!:Z 1948 ~ _l2.2Q 122Q External 106.1 13·8 13.6 13·5 13,4 33·3 37,,2 Internal 185·3 569.1 581.2 895·5 648.7 701.1 720.1 Total 291.4 582.9 .594.8 609.0 662.1 734.4 75'7.3 ( Source: ~uarter1y Bulletin of Statistics, South African Reserve :Sank, September 1950. and 13RJ  Table A-l: LIST OF THE EXT:ERJ.JAL DEBT OF TEE UNIOl~ OF SOUTH AFRICA, JULy :31, 1950 (In thousands) Page 1 Description .\mount outstanding Issue Ma- Held in Held In Coupon date turity Total Union 01 in q.S. date of S•A.?:.! London ..... -" dollars - DEBT OF THE UNION OF SOVTH AFRICA u.s. dollar debt ." Surplus property 11 U.S • .Banks . - 3% fJ 4/1/47 1950 4/1/52 1953 $ It 297 20,000 $ 1;297 20,000 Totald~llar debt 21,297 (As of Sterling bonds 6/30/49) Union. of S.A. stock '\ Union of S.A. Inscribed Stock Union of S.A.Inscribed Stock 3 1/2 3% 3 1/2~ Oct.1950 1968-70 g~if.~ 195L!-64 1953-73 T ~ 5,000 1,331 910 !. 1jj 539 91 - T 5,000 792 819 13,994 2.217 2,292 Union of S.A. Inscribed Stock 3 lZz"%' 7/ 1 / 39 1954-59 5fOOOs./ 455 4 t 539 12,704 Union o£ S.A. 1nBcr~Qed Stock ·3 1/2% 11 5134 1955-65 8,763 8,278 485 1,35'1 Union of S.A. Stock Union of S.A. Insoribed Stock 3 11.2f.: 4 1/2% 11/49 9/i/30 1965-67 1955-75 10,000 1,224 11730 10,000 494 27,988 1,383 !.iTansvaal ' GOvt. Guar. Stock 3% 1909-10 7/1 /58 5,000 !JJ 5.000 1),994 Total sterling debt 37,228 sJ 10,093 27,129 75, 929 Y Swiss franc debt Swiss .Banks 3 3/412l 1950 1952-53 Sw fr 36,524 8,500 Total debt of the Union of South Africa 105.726 TOTAL PROVINCIAL AND ~RJNICIP~~~EBT 31 52,285 PRIVATE NOl\f-GUiUlANTEED DIlBT lQj 11,636 GRAND TOTAL 169,647 See footnotes on page 2.  Table A-l: LIST OF 'I'}1~ EXTi;Bl-JAL D:::J3T OF TID wJIOn Of SOUTH AFRICA, JULY 31, 1950 21 - Continued Pae~e 2 Sources: Lo:r.ecn Stoc~: :Exchance Year-book, 19.50. London Stoel: l:xchanGe uaily Official List, 7/31/50. 11 Payable (1) by delivery to the U.S. Government of pro}!erty, real or personal, tangible or intangible, or im2rovements to or furnishinGs for real pro}!erty and (2) in local curren~ to be used for the payment of any or all expenditures in South Africa~ any unpaid balance after 5 years is to be due and "!)ayable in U.S. dollars .. ?J As of 6/30/1+9. l! Estimated all held in London, 85% ''lith the oriGinal under\·lriters. lJJ Estimated all held in London. :i/ Of the total amount outstanding, as of 6/30/49, of the Union of South Africa 3 1/27~ Inscribecl Stock of 1939-59 .. ~t.545tOOO ,,,as held in Lonclon. The amount held in London e,s of 7/,)1/50 is ~+,539,000. PJ 3% on the amount outstnnding anel ser'ITice charge of 1/2% on the total $20,000,000 authorized. Repayable at any time vrithin the 3 years d"Lu'ation of the credit. '1J The 3 3/4% rate can be raised to as hiGh as 4j; bo.sed on any further increase in the Si·/iSS banl: discount rate which at the time of the loan \vas 1 1/2%. Period of )ayment is 2 or 3 years. Re~layment to be made by the delivery of 7.500 Id1o;;rruns of fi11e gold. §./ A~ounts held in London only. 2/ Not euaranteed by the Dominion GO'ITernment. W Thel'e are other minor debts of IJrivate corporation \vhich are not included in this total. See footnote §j t Table A-2~  Table A-2: LIS,l OF SOUTH AJ3'.RICAl~ :JXT~~~m;;L ~roT GUA..T1.:J\IT.E::,D BY TH:~ DQI,HHIOU GOV::J:RllN::rrTT. JULY :31. 19.50 (In thousands) Par:e l --Description qutstancLing liJno 1J.nt Held in Hold In Coupon Issue Maturity Tota1Ji Union ill U.S, d.ate elate of S.A"Y London dollars ~ro'Vincia1and Municim!.l :Bon~ :Bloemfontein Inscribed stock ~ 190 L1-10 1954 i, 734 ~ 122 I.t 611 $ 1,710 Bloemfontein Inscribed Stock .5% 1930 1960 480 Y 480 1,343 Total 1,.214, -122 b..Q21 Capeto\m Redeemable Stock :3 1/2~ 19.37 1957 1,826 ?J 1,826 5,111 Capetown Inscribed Stock 4~b ( 1903-4-5 1953 1,.574 321 1 • .574 4,405 Ca;petovm Sub.Mn.,\'n:s.lnscr, stock: 4('6 1951 86 30l } 851 Capeto,m Capetow vioodstoclt Re~;istered. Stock MO\"lbray Re[;istered stocl!: o 4 1/2<b et 1902-04 I 1904 1908 1955 1958 303 193 79 73 24 193 79 .540 221 Capetolm Redeemable Stocl:: 5jO 1927 1969 990 275 990 2,771 C~)eto\m Redeemable Stock 5% 1930 1961 728 3'12 728 2,..038 Total _5,693 1,151 5 t 59!.. 1 St ~<n Z Durban Inscribed Stacie Ir10 1901 1951 205 29 205 574- Durban Inscribed Stock 4% 1902 2[+2 40 242 677 Durban Inscribed Stock and) 1903) Resistered Stocle ) 44 /0 1953 616 124 565 1,581 1905) Durban ReGistered Stock 410 1907 1957 244 51 242 677 Durban Redeemable Stoclt 51b 1927 1958 984 484 887 2,483 ~ _?..1 291 728 ?141 ...2~ East London CO~0. Inscribed Stock 4% 1905 19.54 293 57 294 82 3 East London (City) Redeemable Stock 5~ 1928 1960-70 1,206 2/~ 1,211 3.389 Total I J ;99 lOS h..5.Q2 4.212  Table A-2: LIST Oi.' SOUTE Al':{IO.:jj~ :;:':~:l;:;~G:;~;;L D:i:bT NOT GU";": :i3Y :I'lL ::OO~iIHIOH l~O~_J~_\..i..'1'8IfTJ JiJ.uY ,1950 - Contd. (In thousands) _Pa£CEL2 ____ ~~~o~n~_____, Arnount .outstnndint~ :rIc Id in Held In Issue lviC'. turi ty TotDJ.:;} union in U.S. Ooupon (l.ate date of S .A:!! London dQl1arJL 'Provincial and Hunici-,a1 :Bonds -- Oontd. Johrulnesburg Inscribed Stock 3 1/2% 1937 1952 ib 1,000 y !b 1,0000 2,799 Johannesburg Inscribed Stock 3 1/2% 1938 1952-6,3 2,000 y 2,000 5,598 Johnnnesburg Red.Stock(Oash) (~301?do) ) Johannesbttrg Red.Stock(Oash) (fully-pd.) ) :3 1/2~j 1959-60 1,000 y 1,000 2,799 Johan,"lesburg Red. stock (Oonversion) ) Johannesburg Inscribed Stock LV': I~ 1933 1953-63 1.000 y 1,000 2,799 Johannesburg Inscribed stock 5(1 ,J 1930 1950-60 1,000 y 1,000 2,799 Total -2&.00 6.000 16t124 Pietermarit zburg Oonst. Stock 4::: /J 1902-4-9 194)~53 758 T !I:! 207 311 870 ~ 758 207 311, 870 Port Elizabeth ~h"ks. Inser. Stock L~~h 1903 1953 282 117 283 792 Port Elizabeth Inscribed Stock 4ft 1904 1964 311-2 108 3Lr,1 954 " Port Elizabeth Redeemable Stock 510 1927 1962 315 126 315 882 ~ ...2.22. -ill ..JJ.2. _?~6Z8 Pretoria Inscribed Stock 3 1/2% 1938 1953-58 1,000 Y 1,000 2,799 ~!H 1.000 1 1 °00 2*722 Total Sterling ;!;, 18.934 ;::. 2,864: ib18 t C;8l $ 5?t?s,,5 Private debts 21 Debt of Anglo-,American Oorp. to S\dss Eanks:il 4% 1950 1957-62 S\i fr 50.000 $ 11.63.6 Grand Total ;I; 18, 394 ~ 2.864 ;1;18.681 $ 63.221  Table A-2: LIST m' SaUTE ru",!UO.ti.iI D'0UT j.JU '-OT n OTT···· -'TTE--D .uRAl." .• '"or mT.J""C .0;( l.u_' DO'llL';l --~T-O"T 'OiT-"'-:''''' Xl '.J ~_~L;.. ;l\ ...•.r.l, JUI "''''-Tm JY..j .), 10 "'1 I:: ';1.,1 ° - Con td • -~ 11 As of 6/30/49. Y Payable in London only. J/ These are totals of the amounts outs"banding held in London and in the Union of South .:~frica as of 6/30/ L'r9. The amounts held in Lon(lon as of 7/31/50 are shown in a Sel)arate column above. !±J The official year boole of the London stock E:whange. 1950, also lists for the City of Pretoria, Transvaal, South Africn, these debts: Is!'\ue Amount o~ts.1f1n~lin,s. 6/30/42 3 1/2%, Inscribed.St;"cl:, 1934 to 1957-67 ~ 900,000 4 1/25';} Inscribed Stock, 1933 to 1964 500,000 5'Jb Inscribed Stock, 1923-25 to 195.3-57 680,591 5~ Inscribed Stock, 1927 to 1959 350,000 5% Inscribed Stock, 1929 to 1961-81 699,925 These stocks 'tere issued in Pl'etoria leud in London, und the l)rincipal and, interest is :pn;mb1e in South Africa or in London. There is, hO'\J'ever, no indication of the amount of each issue held in London and South Africa. !il The .Anglo-American Cor:;?oration of South Africa. borroi1fed, in 19.50, froTa a group of b<..:wl:s in S\I/i t::-,er1ar,d, S,\"l fr .50 million.. The interest rate is 4%, ancl the maturity date of the loan is 1957-62. fJ There are also several small debts of various priv:'\.te cOnl'J)allies. TI:IO of the more im:portDJ1t of these are tho following; 1'telgedacht Ex1)lore,tion Co., Ltd. ;"J31,770 556 1st mortGac;e debentures. ~Jest Rand Investment Trust, Ltd. ;"1~249,940 4% convel'tible notes. Sources: London Stock :8:::chanGe Year-book t 19.50. London Stock Exchcnge Daily Official List, 7/31/50.  ']'",b 1e_ A-1: INT}JI{:ST AHORTIZATiOlf PAYI,rr::JTS OlI :J.lEC =-.:J:T':::~.r:.~~~'lL D:Jl3T Q}? T~-E~ iJIHOF OF SOUTH AFRICA, 195C-IY75 (E:l:pres sed ill tho:'lsrmdr, of U. S. oollars) I!l.ge 1 3u."r-01 us PrO'ilert,,~-J7-_- ~-~- .- -J: _f- ·--J.;~::-i:;:~.'t:o u, s. ~~~';-cr:~~tf:7 ............... __-,'::,,-,o~p,l : dolJ.ur d.ebt Prjyate SWiss ft?DC crpCjit 'll:... Amount Payments .Amount PD,:.yne.i1t~ ':i.lllO"lmt Pa;?ffiel'J to A.i110unt PClyments Year out- Amorti- In- IT t 1 out- Jimort i- In- 171 t 1 out- A:,norti- In- :TI t':\l out- Amort i- In-- T' t 1 ~ . _ _ _ _~s,t:and.~rlg zu. t· ~on t eres t 0 a S t c1n d' 111& • zo.. t.J~on t eres t.J..o a s t,::.~ng ",..:1 .; . za t J.on t eres t.J..o co. St and' lng zat ~on . t eres t 0 a 19.50 :J 1,297 20,000 300 300 21,297 300 300 l~, 250 80 80 1951 1,297 20,000 600 600 21,297 600 600 4,250 160 160 19.52 1,297 1,297 1,297 20,000 600 600 21,297 1,297 600 1.897 8,500 319 319 1953 20,000 20~000 600 20,600 20,000 20.000 600 20,600 8,500 8,500 319 8,819 1954 1955 1956 1957 19.58 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975  Table A-3t ESTII{A.TED IjJT:~IillST Mill AiVIOIlTIZATIOH' PAYlvIENli S OlT TID~ JJXTliRNAL DEBT OF T:H:E UNION OF SaUTE A...~ICA" 1950-197.5 (Expressed in thousands of U.S. dollars) Page 2 Non-govt. guar •. quiss franc Sterling debt of 6J Sterling debt of l;lunicil)als T t l t· 1" ,.,. d bt credi t l:J:J Union of South Africa ~ of Union of South A:fl'~ca zJ 0 a s er ,tnb e Year Amount payments Amount Pal[l~nts Amount P&rnents Amount PaymeLt::.:;·s:.....-._ _ _ , out- ilJllorti- In..... 171 t lout- .t\morti..• In- Ttl out- .Amorti.... In- Ttl out- Amorti- In- T standing zation t~est 10 a standing zation terest 0 a s~anding zation terest 0 a standing zation terest . otal 195021 11,636 233 233 75,929 2,102 2~102 52.285 2,154 2~154 128,214 4,256 4,25(. 1951 11,636 465 465 75,929 2,558 2,558 52,285 1,425 2,154 3,579 128,214 I 425 p 4,712 6,IT; 1952 11,636 465 465 75$929 2,592 2,592 50 860 p 3$476 2,097 5,573 126.?9g 3 476 4 689 8,16:) 1953 11,636 465 465 75,929 2,592 2~592 47,]84 7,648 1,972 9,620 123~J13 7:648 4:564 12,21;:'~ 1954 11,636 465 465 75,929 2~592 2,592 39,736 2,533 li 666 4,199 175,665 2,533 4,258 6, 79~ 1955 11,636 465 465 75,929 2,592 2,592 37,203 540 1,565 2,105 113,132 5J~O 4,157 4, 69~' 1956 11,6}6 465 465 75,929 2.592 2,592 36,663 1,543 1,543 112,592 4,135 4,135 1957 11,636 1,940 465 2,405 75,929 2,592 2,592 36,663 5,788 1,543 7,331 112,592 5,788 4,135 9,923 1958 9,696 1 p 940 388 2,328 75»929 13~994 2,592 16,586 30,875 5,503 1,337 6,840 106 . 804 19,497 3,929 2 3,42(' 1959 7,756 1,940 310 2,250 61,935 12,704 2,172 14,876 25,372 1,105 1,105 87,307 12,704 3,277 15, 98~ 1960 5,816 1,940 233 2,173 49,231 1,727 1.727 25,372 6,9L~1 1,105 8,046 74,603 6,941 2,832 9,77:; 1961 3,876 1~940 155 2,095 49,231 1,727 1,727 18~431 2,038 800 2,838 67,662 2,038 2t527 4,565 1962 1,936 1,936 77 2,013 49,231 1,727 1,727 16,393 882 698 1,580 65,624 882 2,425 3.30'1 196) 49,231 1,727 1,727 15,511 8,397 654 9,_051 64,742 8,397 2,381 10,778 1964 49,231 2,217 1.727 3,944 7,114 954 346 1,)00 56~345 3,171 2,073 5, 24.L;· 1965 47,014 1,357 1,690 3,047 6,160 }08 308 53.174 1,357 1,968 3,325 1965 45,657 1,612 1,612 6,160 308 J08 51,817 1,920 1,920 1967 45~657 27,988 1,612 29,600 6,160 308 308 51~817 27,988 1.920 29,908 1968 17,669 632 632 6,160 308 308 23;829 940 940 1969 17,669 632 632 6,160 2,771 308 3,079 23.829 2,771 940 3.711 1970 17,669 13,994 632 14,626 3,389 3,389 169 3,558 21,058 17,383 801 18,184 1971 3,675 142 142 ),675 142 142 1972 3,675 1L(2 142 3,675 142 14~~. 1973 3,675 2,292 142 2,434 3~675 2,292 142 2,431.1- 1974 1,383 62 62 1: 38:: 62 62 1975 1,383 1,383 62 1,445 1,383 1,383 62 1,445 See footnotes on page 4. Table A-.3: ESTIUATTID INT:JIGST A11J) AMORTIZATION PAYl.GNTS ON THE EXTER1:JAL DEBT OF THE UNION OF SOtPrH A.I:I~ICA, 1950-197 (Expressed in thousands of U.• S. dollars) Page 1-= Total debt of Union of South Africa Grand total Amount Pa;[ments Amount Palments Year out- Amort i- In- Total out- .Amorti-· . In- Total stalldill~ zation terest standing za.tion terest 19505.1 101,476 2,482 2,482 165,.397 4,869 4,869 1951 101,476 J,3 18 3,318 165,397 1,425 5,937 7,.362 1952 105,726 .1,297 ,3,511 4,808 168,222 4,.77.3 . 6,06.3 10,846 195.3 104.429 28,500 .3,511 32,011 163,449 36,148 5,948 42,096 1954 7.5.929 _2,592 2,592 127.301 2,533 4,723 , 7,256 1955 75,929 2.592 2,592 124,768 540 .. 4,622 5,162 1956 75,929 2,592 2,592 ,124,228 4,600 4,600 1957 75,929 2,592 2,592 124,228 . 7.728 4,600 121'328 1958 75,929 1.3,994 2,59 2 16,586 116,500 21,437 4,317 25,754 1959 61,935 12,704 2,172 14,876 95,062 14,644 .3,587 18,231 1960 49,231 1.727 1,727 80,419 8,881 3,065 11,946 1961 49,231 1,727 1,727 71,5.38 .3,978 21'682 6,660 1962 49,231 1,727 . 1,727 67,560 2,818 2,502 5,.320 1963 49,231 .1,7 27 1,727 64,742 8,397 2,381 10,778 1964 49,231 2,217 1,727 .3,944- 56,345 3.171 2,073 5,244 1965 47,014 1,357 1,660 .3,017 53,174 1,357 1,968 .3,325 1966 45,657 1,612 1,612 51,817 1,920 1,920 1967 45,657 27,988 1,612 29,600 51,817 27,988 1,920 29,908 1968 17,669 632 632 23.829 940 940 1969 17,669 632 6.32 23,829 2,771 940 .3.771 1970 17,669 13,994 632 14,626 21,058 ;1.7,383 801 18,184 1971 3,675 142 142 3,675 142 142 1972 3,675 1L~2 142 . 3,675 142 ·142 1973 . 3,675 2,292 142 2,434 3,675 2,292 142 2t434 1974 1,383 62 . 62 1,383 62 62 1975 .1.383 1,383 62 1,445 .1,383 1,383 62 1,445 See footnotes on page. 4.  Ta1.11e ..\.-3: r:STL,lli.:zsI) Il:TLICST ANTI ,b.iIOIlTlz..::.TIOH FAY14":::UTS on S::F£ :=XL. DEBT OF TIL tJ1TIOIJ 0:2 SC""v~H AFoLUCA, 1950-1975 - CO.i.1.tiI:°.wd 11 PaYc:,ble (1) by delivery to the U.S. Gover!"hllent of pro~")erty! real or :::)crsonal, tangible or intan;:;iole, or improvements to or furl'j.ishings for real pro,erty and. (2) in locc.l currency to be usecl for the payment of :3..ny or all 6xpendi tures in South Ai'rica; ar~ unpaid balance after 5 years is to be due and p~yable in U.S. dollars. y Several A~erican banks have authorized for the Union of South Africa a revolving creQit of $20 million.. The interest is to be charged at 3% per annum, payable quarterly, on the amount outstandiJ?g and 1/210, payabl.e quarterly, on the total amolJ..."lt of the loan. It is to r1l."'1 for three years, but can be repaid. at any time. It \'las assumed in this sched.ule that the total amount of the loan \1ould be repaid in the third year. 1/ The Union of South Africa borro\r/ed from a group of S\'liss D&nl::S connected i.V'i th the Sw"iss Bank Cor-~}orat ion S'ltJ" fr 36,523.500 .. Interest payments start at 3 3/4% and remain there lJ..."'11ess t~1ere is an upvla.rd change in the bank discount rate in S'l'ritzerland. In that case interest charges could amount to as much as 4%. The loan is to rlln over a period of two to three years, the third year at the" o:ption of t:1.e Union of South Africa, and it is repayable t1t.JO yeal~s after the date of signing of agree- ment or three years at the option of the government of South Africa. Final payment is in 7,500 kilograms of fine gold to the lending batiks. It was assumed in this schedule that the total amount of the issue 'v-lould be repaid in the third year. !H The Anglo-American COl11ore,tion of South Africa borrOi,ied, in 1950, from a group of banks in S't'1itzerland,. Sw fr 50 million. The interest rate is 4% &"'1d the maturity date of the loan is 1957-62. sJ ApJ?roximate amounts outstanding as of 7/31/50. §j The debt of the Dominion is covered by a general sinl-;:ing fund amounting to $22,449,000. See Table A-lJ-. 1/ The majority of the bonds of the municipalities are covered. by s inlcing funds, for 'tvhich see Table A...1.t..  ~able A-4;. SIIJKI:i.~G- FUND I'i-lOVISIOI'l'S OJ? :r:;XTERllAL BONDED DITi:3T OF Ul"JION OF SOUTH AFRICA (In thousands of pounds sterling) Page 1 Gross Sinl::ing fund Total Bonds sinking for specific Sinking fund rate debt fu.."1d bond lJniQn of South Africa All bonded debt 17s548.Y 1,036 p~a. plus revenues derived from mining leases, beivanrplaats and mis- cellaneous loan recoveries. J 1/2%, 1939-1954-9 4,545 5%, 1930-1950-70 3,540 4 1/2%, 1930-,·1955-75 1,225 3 1/2%, 1932-1953-73 910 J 1/2%, 1933-1955-65 8,762 3%, 1934-1954-64 1,332 J 1/2%, 1949-1965-67 10,000 J 1/210, 19.50-·1968-70 5,000 (Transvaal Guar. StkJ 3%, 1909-1958 5,000 4~901Y Municinalities of South Africa Bloemfontein All bonded debt 1,84iY 4%, 1904-.10-1954 734 59?~ 5%, 1930-1960 480 lJ2.J.J Capsto1tTn All bonded debt 18,893~ 8,597Ji 3 1/2%, 193?··57 1,826 3/4% l1~a. 4%, 190)-4-5 to 1953 1,574 15 p.a.- 4%, 1902-04 to 1951 304 J p.a. 4%, 1904 to 1955 193 2 p.EJ.Q' 4 1/2%, 1908 to 1958 79 1 p.a • .5%, 1927 to 1969 990 8 p.a. 5%, 1930 to 1961 728 11 p.a. See footnotes on page .3.  Tnl)10 A_I.~: Sn;;r:ING FUND PROVISION'S Oll' ZXT:'-:RHJl..L B()l'ID~D D:8:6T OF T.mIOIIT OF SOUTH AFRICA - Continued (In thousands of Dounds sterlinG) PaRe 2 m Gross Sinking fund. l30nds ~ota1 sinking for specific Sinking fund rate ___________________.______________________u_ebt f1Uld _________~b~c~Jn~d~________________~_______________________________ MuniciT)a1ities of South Africa Durban All bonded debt 17.9901jj2:.i Lv, 935 City COUl1cil must set aside 4%, 1901 to 1951 205 1/4 of the ~?r'oceeds of al~ 4%, 1902 to 1952 21-1-2 sales of to't"m 12.11(ls fu"'1d such 4%, 190)-05 to 195J 616 equb,l SlL'TIS out of the Boro ugh 4%, 1907 to 1957 244- flUld each year to aCCu.lllTh- 5%. 1927 to 1958 983 lations of not more than 4%'p.a. East London All bonded debt 2,7 L!>?'Y 1 .. 389 4%. 1905 to 1954 293 4-% p.a. (cum.) 5%, 1928 to 1960-70 1,206 4 l/2~; p.a. Joharmesb1.U'g .All bonded. ete bt 31,87ai/y 7,766 3 1/2;;, 1937 to 1952 1,000 8175..1 J 1/2%, 1938 to 1958-63 2,000 6SW '3 1/2%, due in 1959-60 1,000 4%, 1933 to 1953-63 1,000 3925./ 5%, 1930 to 1950-60 1,000 L!85:i1 Pietermnritzburg All bonded debt c: t 3L'r8Y 1, 007§} 4%. 1902-4-9 to 1949-53 758 Redeemable at par-:bJOl •. 117 on 12/31 / 49 and ~456,973 on 12/31/53. Port Elizabeth All bonded debt 10,2l.r;Y 2,873'l1 4~~, 1903 to 1953 283 3/L:'~b }?a. 4~ , t1904 to 1~64 " 341 ',."'/ .3 / '+/.? poD.. 5~t 1927 to 1962 , 8",-·1 1.477 0;0 p.a. 315  "..,. Table A_f':;) ~'lliTD PROVISIOnS OF 3:~TI1.'Ur.AL ]OlIDED D~jJT 01~ JNIO.d OJ? SOUI1H AJ!'2.ICA - Continued (In thousands of pOlmds sterling) _~~ _____._. __ . _.__ ~ _ _.. ____ ..... :--:o,.~._ 3_ Ttl Gross SirucinG fund Bonds 0 b~ sinking for specific SirL:inc fund rate de fund bOl'ld ------------------------------------------- ~hUliciualities of South Africa Pretoria 3 1/2%, 1938 to 1953-58 1,000 11 As of 3/31/49. ?J Includes other than external debt. J./ As of 3/31/48. !±J As of 7/31/47. 5./ As of 6/30/48. fJ As of 7/31/48. 11 As of 12/31/48.