A joint team of banking and government officials has been established to look into the immediate funding needs of the state-owned enterprises (SOEs) that are facing difficulty in meeting their obligations to pay staff and suppliers. A joint team will also look at new funding options of state-owned companies for the future, as well as their medium-to long-term structural issues. The initiatives come out of a meeting between Public Enterprises Minister Pravin Gordhan, Finance Minister Nhlanhla Nene and CEOs of banks and asset managers in which the government appealed to the financial sector to assist SOEs in difficulty. Cas Coovadia, the MD of the Banking Association SA, released a statement in which he said the leadership of banks and asset managers had acknowledged the strategic importance of state-owned enterprises and recognised that they could not be allowed to fail. Damaging Effect "State-owned enterprises — like Eskom and Transnet — provide essential services that are necessary...
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.