expand their markets in South Africa. The ban on new loans and credits to South Africa has been the most effective form of pressure on the apartheid régime. Nevertheless, South Africa has been able to extend itself a financial lifeline by exploiting loopholes in sanctions legislation. Rescheduling and the conversion of short- and medium-term debt into long-term loans may not be considered as "new loans" but they function as such. Loans, moreover, continue to be available for South African companies registered abroad. This loophole is likely to be increasingly exploited by South Africa to improve access to foreign borrowings. 58. The exclusion of trade credits from the 1985 moratorium and most sanctions legislation has made this virtually the only source of new foreign financing for South Africa and of crucial importance to its financial survival. The availability of trade credits, primarily suppliers' credits, for financing exports to South Africa have increased after mid-1986. These include official trade credits, guarantees and insurance, as well as off-balance-sheet support such as gold swaps and gold loans provided by Swiss banks. A recent report of the Centre against Apartheid indicates that some 30 per cent of South Africa's trade is currently backed by foreign Governments through their official export credit agencies, of which the biggest insurers are the United Kingdom and Japan. 59. Trade figures for the period 1986-1988 show that there has been a marked increase in exports to South Africa from the wealthiest countries: 72 per cent increase for the Federal Republic of Germany (qualified by the rise in the DM vis-à-vis the dollar which, in United States currency, overvalues the amoimt of exports paid for in marks), 50 per cent for Japan (qualified in the same way), 54 per cent for Britain, 41 per cent for the 
**Analysis**
The text appears to be discussing the ways in which South Africa has been able to circumvent economic sanctions imposed on it, and how it has managed to maintain access to foreign financing and trade credits. The text highlights the loopholes in sanctions legislation and the creative ways in which South Africa has exploited them to maintain its economic viability.

**Category**
International Trade