Loan exploits a shift in sentiment

South Africa's finance officials have been through the mill in recent months. It has been hard enough to keep the country's hardline economic policy on track in the face of slowing growth but that was only one of a list of woes.

The situation has been worsened by the rand's collapse late last year, political turmoil in neighbouring Zimbabwe, the ever-worsening Aids disaster, Argentina's meltdown, a domestic banking crisis and the global market downturn.

So it was hardly surprising that South African Reserve Bank officials warmly welcomed the signing of a new $1 billion syndicated loan in July as a strong show of support for the country from the international financial community.

The new term loan, which was signed at a ceremony in London attended by Reserve Bank governor Tito Mboweni, attracted total subscriptions of $1.725