Eskom wants R100bn debt relief from state to keep lights on
The plan would add 2% to debt-to-GDP ratio and is likely to be seen as negative by ratings agencies
Eskom is to ask the government to take R100bn of its debt onto its own balance sheet as part of a package of measures to turn the troubled company around.
While the move would give Eskom relief, it would add another 2% to the government’s debt-to-GDP ratio and could be seen as negative by credit ratings agencies.
Currently, Eskom operates thanks to a R350bn debt guarantee from the government, which has been flagged as the biggest risk to the fiscus.
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