FAQs : vimarsana.com

FAQs
Frequently Asked Questions
There has been much talk about the City’s liquidity challenges in the last couple of weeks. What is the City’s position on this matter? 
The liquidity situation took a negative turn due to accelerated capex program ahead of 2010 and the implementation of programme Phakama. The drastic reduction of the annual capital expenditure is aimed at bolstering cash reserves back acceptable levels and thus less reliance on borrowing.  After low revenue collections levels in 2010/11 the City revenue collection strategies are starting to bear fruit as can be seen on improved revenue collection rates.  Furthermore the City has relied less on bridging finance relative to the previous financial year.  The City is only now (September 2011) after 3months from the beginning of 2011/12 issuing up to R1billion commercial paper to mitigate any potential cash flow mismatches that might arise. In previous financial year the City had already issued in excess of R2 billion worth of commercial paper already after 2 months into the new financial year.