Banks and other lenders had given the government an ultimatum to replace the Eskom board by November and that of arms manufacturer Denel by December or have their credit facilities withdrawn, Treasury officials said on Wednesday. An Eskom default has been flagged as the single biggest risk to the economy, with Finance Minister Malusi Gigaba saying in his Wednesday briefing to journalists at Parliament that the government would be unable to bail it out should lenders refuse to roll over their loans. "Eskom exposes government to an enormous risk because of the size of its guarantee framework, the size of the loans and the debt it has. Obviously if anything went bust in that regard it would have an immediate impact on the national balance sheet," he said. If you are already a subscriber, please click on the following link below to go to the full article: Fix SOEs or forget loans, warn banks If you would like to subscribe  to BusinessLIVE Premium to read the full story, please click her...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now