South Africa:

Relationship With Western Financial Institutions

NSIAD-90-189: Published: Jun 7, 1990. Publicly Released: Jul 9, 1990.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO analyzed: (1) South Africa's debt; (2) trade credits to South Africa and the economic impact on South Africa of denying trade credits; and (3) the implications of excluding South Africa from the American Depositary Receipt (ADR) system.

GAO found that: (1) South Africa has been virtually locked out of world capital markets and is unable to get new medium- and long-term loans to repay the principal on existing loans; (2) South Africa managed to reduce its large payments due in 1990; (3) even with the improved climate for political negotiations, international investors are reluctant to make medium- and long-term loans to or investments in South Africa; (4) South Africa got credits associated with trade to partially compensate for the lack of new lending, but there was small credit inflow compared to large outflows of total debt repayment; (5) the United States provides only short-term credits associated with trade to South Africa; (6) it was unclear which countries were providing most medium- to long-term credits to South Africa; (7) the effect on South Africa of a unilateral U.S. ban would be limited, though it might reduce the volume and value of U.S. exports to South Africa; and (8) if South Africa were excluded from the ADR system, there would be little effect on South Africa's economy.

Sep 22, 2016

Sep 20, 2016

Sep 7, 2016

Aug 31, 2016

Aug 25, 2016

Aug 15, 2016

Jul 14, 2016

Jul 6, 2016

Looking for more? Browse all our products here