INTERIM FINANCIAL STATEMENTS
Eskom’s R367bn debt burden must be dealt with, says chairman
Liquidity, outstanding debt and how to tackle tariff hikes are just some of the challenges facing the new team
Eskom’s new board released the company’s delayed interim financial statements on Tuesday, indicating that credit lines to the company had been restored but warning that its R367bn debt burden was unsustainable and had to be dealt with. The restructuring of the debt will include the possibility of some of the lenders swapping their debt to equity. "No company can be sustainable with that kind of gearing. We can’t run a business that relies on borrowing to cover consumables. So there is a discussion on this … to determine what kind of structure we need," said chairman Jabu Mabuza. Mabuza named key state institutions such as the Public Investment Corporation (PIC), the Industrial Development Corporation and the Development Bank of Southern Africa (DBSA) as those that would be approached to either swap their debt to equity, or to acquire shares in Eskom. The PIC, which manages the pensions of public servants on behalf of the Government Employees Pension Fund, is already among Eskom’s la...
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