Eskom executives and the Treasury will approach local banks as early as Monday to restore lending as the company races to avoid the suspension of its bonds by the JSE and to dodge a pending letter of default from the World Bank. The state-owned company needs to raise R20bn over the next few weeks to persuade its auditors that it is a going concern. This will enable it to publish interim financial statements and allow access to foreign debt capital markets. If the World Bank issues a default letter during a scheduled meeting with Deputy President Cyril Ramaphosa at the World Economic Forum in Davos, Switzerland this week, it will trigger a 14-day recall on its $3.75bn loan, which could trigger a recall on Eskom’s R350bn debt mountain. On Saturday, the Presidency announced a new board for Eskom, to be headed by Telkom chairman and business leader Jabu Mabuza. The new interim group CE is Phakamani Hadebe, a former Absa executive and former Treasury official.Finance Minister Malusi Giga...
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