Treasury is working to fast-track plans to restructure Eskom
The Treasury made the announcement in response to a statement by ratings agency Fitch
The Treasury says it is working to accelerate plans to restructure ailing power utility Eskom after ratings agency Fitch opted to keep the sovereign credit rating on hold, with a negative outlook.
“National Treasury, in partnership with the department of public enterprises, is instituting a series of measures to bring discipline to the utility's finances, and to step up the timeline for restructuring,” it said in a statement responding to Fitch's decision.
Fitch warned on Wednesday that failure to form a credible plan to stabilise government debt — exacerbated by bailouts for troubled state-run firms such as Eskom — could prompt a downgrade, and it is regularly cited as one of the key risks to SA's economy.