Steam rises at sunrise from the Lethabo Power Station, a coal-fired power station owned by state power utility Eskom near Sasolburg. Picture: REUTERS
Steam rises at sunrise from the Lethabo Power Station, a coal-fired power station owned by state power utility Eskom near Sasolburg. Picture: REUTERS

Finance minister Tito Mboweni has confirmed an additional R59bn lifeline for ailing power utility Eskom and that is on top of the R69bn announced in February's budget.

The money will come from the National Revenue Fund and is meant to assist Eskom in meeting its financial obligations during the current and next financial year, a move which is likely to increase government borrowing.

How do the ratings agencies view this move? Yeshvir Singh from Fitch joined Business Day TV to discuss the matter.

Yeshvir Singh from Fitch Ratings talks to Business Day TV about the implications of the additional lifeline for ailing power utility


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