SOUTH AFRICA PROBLEMS REMAIN DESPITE DEBT PACT South Africa's new foreign debt agreement sparked a rally in local financial markets, but bankers and economists said the pact removes only one source of anxiety from a still depressed economy. "We have not gone from 'no confidence' to 'full confidence' yet," commented one banker, who saw the agreement as having marginal influence on fundamental economic problems. Money market analysts cited the debt renegotiation as the main impetus behind increases today in both the commercial and financial rand. The commercial rand, used for current account transactions, rose 0.5 cts to 49 U.S. Cts while the financial rand jumped nearly two cts to 33 U.S. Cts. All equity and fixed investment flows of foreigners take place through the financial rand, which is considered the main barometer of South Africa's attractiveness to overseas investors. Analysts predicted the debt arrangement plus further gains in the gold price could push the commercial rand over 50 U.S. Cts and the financial rand to 35 cents in the next few weeks. They said the financial rand in particular was being driven by a tentative provision in the new debt agreement that could favorably affect the currency. Foreign creditors may get permission to convert loan balances and short-term claims into equity investments in South Africa. Finance Minister Barend du Plessis said the Reserve Bank was "investigating the implications of such conversions in light of terms and restrictions of the financial rand system." Du Plessis in disclosing the new agreement last night said the recent sharp rise in the financial rand was an example that "some foreign investors are again taking a more realistic view of South Africa." Terms of the debt agreement call for South Africa to repay 1.42 billion dlrs of 13 billion dlrs of frozen debt over the next three years. The agreement extends a standstill arrangement, expiring June 30, that has been in place since August, 1985. Bankers said the repayment amounts essentially confirmed their private estimates and could be comfortably met by the monetary authorities. "They (creditors) asked for the maximum amount and we offered the minimum," said one banking source, reacting to reports from London that creditors were hoping for larger repayments. Reserve Bank governor Gerhard de Kock said South Africa should have "no difficulty whatsoever" with the terms. Economists said the debt agreement would have no significant impact on economic problems continuing to face South Africa including high rates of inflation and unemployment, labour unrest and political uncertainty. Johannesburg Stock Exchange president Tony Norton, speaking yesterday before the debt agreement, said the economy was "in bad shape" and there was "an awful lot of talk but little action" to cure serious problems.