Cosatu’s rescue plan not the way to go, warns BNP Paribas
The proposal amounts to little more than reshuffling the state’s contingent liabilities by stealth, says BNP Paribas, joining other sceptics of the plan
10 February 2020 - 13:25
UPDATED 10 February 2020 - 23:33
Cosatu’s debt-rescue plan for battling power utility Eskom, which has already received support from both the public enterprises ministry and the president, should be broached with caution because it is likely to compound the state’s financial liabilities.
This is according to BNP Paribas, which is expecting power cuts by the embattled state-owned enterprise (SOE) to shave further growth from SA’s anaemic economy, resulting in the bank cutting its growth forecast for SA for 2020 to just 0.5% from 0.8% previously...
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