Eskom rescue heightens SA’s downgrade risk
Finance minister Tito Mboweni says the state might have to increase borrowing to fund an extra R59bn in aid for utility
Eskom is set to add to the government’s fiscal woes just as a weaker-than-expected economy has made it unlikely that finances will stabilise enough for the country to avoid the loss of its last remaining investment-grade rating.
Government bonds and the rand fell on Tuesday after finance minister Tito Mboweni said the state might have to increase borrowing to fund an extra R59bn in aid for Eskom over the next two years.
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