Banker confident of reforms

Press, 14 January 1986, Page 6

Banker confident of reforms

NZPA-Reuter Johannesburg A Swiss banker, Fritz Leutwiler, said yesterday he was confident that the South African Government would make political reforms and said he would put forward new compromise proposals next month in a bid to solve South Africa’s foreign debt crisis.

South Africa froze repayments on SUSI 4 billion ($2B billion) of its SUS 24 billion ($4B billion) foreign debt in September after banks, alarmed at political violence in the country, cut credit lines. Mr Leutwiler is mediating between Pretoria and the creditor banks, which have been demanding apartheid reforms in negotiations on debt rescheduling. Ending a three-day visit to South Africa, Mr

Leutwiler said he would put forward a compromise proposal to solve the crisis at a meeting between the two sides to be held in London in February. “I trust that the proposals I put forward will be acceptable to both the South African authorities and all creditor banks,” he said. He gave no details of his proposals.

“What I need for my negotiations with the banks are strong and positive political signals indicating that reforms will continue,” he said.

South Africa has proposed freezing most of its foreign debt repayments until 1990, but United States banks looking for political reform rejected the proposal, New York bankers said last month.

Mr Leutwiler said that after meeting the South African President, Mr Pieter Botha, ministers, businessmen and representatives of the black, Coloured and Indian communities, he left South Africa “with the conviction that positive signals will be given in the not-too-distant future.”

He hinted they might come in President Botha’s speech at the opening of Parliament on January 31, but he said Mr Botha had not told him exactly what the developments might be. Mr Leutwiler said it was clear to everyone that apartheid had to go. “I notice positive developments have taken place already. I only hope the world will take note of this progress,” he said.