Credit lines reopened to Eskom but concern still over its ability to pay debt
Interim CEO Phakamani Hadebe says Eskom has secured commitments of R10bn by Thursday and another R10bn by the end of February
Eskom finally released its delayed interim results on Tuesday, demonstrating that credit lines were again open to the company. However, auditors indicated that some concerns remained about its ability to meet all its financial obligations over the next 12-18 months. The company came dangerously close to having its bonds suspended by the JSE and to defaulting on debt and other obligations, and it would have had it not been able to secure assurances from banks in the past week that it would be funded to the tune of R20bn over the next 30 days. An Eskom default would have been catastrophic for the economy as it would have triggered cross defaults of all government debt. Interim CEO Phakamani Hadebe said at a briefing on Tuesday that while the money was not yet “in the bank”, Eskom had secured commitments of R10bn by February 1 and another R10bn by the end of February. This enabled the release of the financial statements for the six months to the end of September. However, auditors issu...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.