Treasury may seek lesser of two evils with Eskom debt
Sources say the Treasury is mulling moving the debt to a special-purpose vehicle, which may imperil SA’s credit ratings
24 March 2021 - 18:39
The National Treasury is considering whether it would be better to move a chunk of Eskom’s R464bn of debt into a special-purpose vehicle (SPV) or have the state take over responsibility for it directly, people familiar with the situation have said.
While banks have led discussions for the past few weeks over the creation of an SPV that would take over at least R100bn of Eskom’s debt, and possibly much more, that debt would almost certainly have to be guaranteed by the government, the three people said, asking not to be identified because an announcement hasn’t been made...
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