The ratings on the Republic of South Africa are supported by: Prudent fiscal policies and reforms that have brought spending under control and put deficits on a downward trend. National government deficits are projected to decline to about 2.0% of GDP by 2003-2004 from a budgeted 2.5% in 2001, which is a substantial improvement from more than 5.0% in the mid-1990s. Reductions in the Reserve Bank's forward foreign exchange book should also reduce future budgetary risks stemming from potential losses, which are ultimately a government liability. General government debt is forecast to fall to about 45% of GDP, and should decline further with the planned sale of state assets. A relatively manageable external debt burden. South Africa's external position has
