South Africa is hiring an independent contractor to advise on conditions it should attach to debt relief for state-owned power utility Eskom, Finance Minister EnochGodongwana said. Moneyweb Debt PowerCuts
South Africa is hiring an independent contractor to advise on conditions it should attach to debt relief for state-owned power utility Eskom, Finance Minister Enoch Godongwana said. The loss-making company’s debt pile of about R400 billion is unsustainable and the government expects to shift between one-third and two-thirds of its loan obligations onto the state’s balance sheet and attach strict conditions to the relief.
” The Treasury expects to complete the process by the time of the budget review scheduled for February, when it is likely to quantify the support and the method of effecting the Eskom relief. The debt transfer isn’t accounted for in updated fiscal metrics, which show government debt will peak at 71.4% of gross domestic product in the current fiscal year — two years earlier and almost four percentage points lower than previously predicted.