by John E. Lind, CANICCOR Research
San Francisco, California, United States
November 1988
4 pages
Type: Report
Coverage in Africa: South Africa
Language: English
Contents: 1. Financial Sanctions • 2. Trade Sanctions • TABLE I. FOREIGN CURRENCY REPAYMENTS UNDER GUARANTEES FROM THE SOUTH AFRICAN GOVERNMENT • TABLE II. COMMITMENTS FOR SOUTH AFRICAN TRADE OF INSURERS IN THE INTERNATIONAL UNION OF CREDIT AND INVESTMENT INSURERS (Berne Union) • TABLE IIA. TOTAL OUTSTANDING COMMITMENTS OF THE INSURERS OF THE FEDERAL REPUBLIC OF GERMANY AND LENDING BY YEAR OF THE KREDITANSTALT FÜR WIEDERAUFBAU FOR SOUTH AFRICAN TRADE • Table III. OFFICIAL GOVERNMENT TRADE CREDIT AGENCIES AND INSURERS OF TRADE CREDITS • By the Spring of 1990, a new stand-still agreement covering some $11 billion of debt must be negotiated with South Africa's foreign bank creditors; the present agreement ends on June 30. Over $1 billion of bonds not covered by the stand-still agreement are also coming due. The amounts outside the stand-still agreement include, among other commitments, all the guaranteed bonds of the government and parastatal corporations such as ESKOM. These payments clearly show a peak of about $2 billion in both 1990 and 1991. The South African Council of Churches (SACC) and the Bishops Conference have urged that economic pressures be used to help bring about social change and to avert violence in that country. Banks should make policy statements that no new conventional lending will be started until South Africa has dismantled apartheid. International campaigns focused on the major lending banks are being organized, and political pressures are needed in the U.K., Japan and Europe to stop official lending and lending guarantees for export to South Africa. Churches internationally are focusing on the members of the bank committee which will renegotiate the South African debt for June 1990. The World Gold Commission was formed by church and anti-apartheid groups in London in 1988 to seek gold sanctions and separating South African gold producers from those elsewhere in the world. A proposal has been made in the U.S. to require certificates of origin for all gold products entering the U.S. The report reprints a newspaper article "South Africa Facing a No-Growth Future, Tightening Sanctions Portend Economic Bloodletting" by Roger Thurow. The report mentions Dresdner Bank, Deutsche Bank, Commerzbank, Credit Lyonnais, Banque Indo-Suez, Union Bank of Switzerland, Swiss Bank Corporation, Credit Suisse, Barclays Bank, Standard Chartered, National Westminster, Citibank, Manufacturers Hannover, Morgan, requirement that all shipments must be prepaid, the London and Zurich gold markets, German and French banks, The Bank of Tokyo, coal, Henri de Villiers, Standard Bank Investment Corp., Chris van Wyk, Trust Bank of Africa Ltd., the pro-apartheid Conservative Party, Ronald Bethlehem, JCI, Hermes Kreditversicherungs, COFACE (Compagnie Francaise d'Assurance pour le Commerce  Exterieur), Gesellschaft für die Exportrisikogarantie (GERG), Export Credit Guarantee Department (ECGD), and the Export-Import (Ex-Im) Bank.
Used by permission of John E. Lind, CANICCOR Research.
Collection: Miloanne Hecathorn papers