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By MBABANE, SWAZILAND – Nov. 16 2011

Swaziland‘s economic growth will grind to near zero this year as the government’s fiscal crisis rocks banks and private businesses, the International Monetary Fund (IMF) warned on Wednesday. 

“The fiscal crisis has reached a critical stage. Government revenue collections are insufficient to cover essential government expenditures,” the IMF said after a two-week fact-finding mission to the kingdom.

Businesses dependent on government contracts were laying off workers or shutting down, the IMF said, projecting economic growth to slow to 0.3% this year.

Banks are also beginning to feel the pinch, head of mission Joannes Mongardini said, warning of an “outflow of deposits to South Africa” that was contributing to a liquidity problem...Read more.