However, to the extent that lengthening the maturity of a country's debt improves its fiscal viability and reduces the likelihood of having to borrow at the high rates charged during a crisis, any increase in debt-service costs should be seen as a prudent insurance premium.
Optimism for the balance of payments for 1997 rests very strongly on the expectation that there will be a good net inflow of capital into the country during this year. So far, the results have been encouraging with a relatively strong demand for South African equities and bonds from non-residents.