Eskom’s R400 billion debt was raised mainly to finance the construction of Medupi and Kusile
The National Treasury is working on a solution to restructure Eskom’s R400 billion debt burden, which it hopes to submit to the Cabinet Committee of Ministers on the Budget by October.
The issue of what to do with Eskom’s debt has been a significant issue for SA’s risk profile and budget since 2018. But due to government uncertainty over the way forward, no progress has been made. been realized. This is the first time the Treasury has done the technical work to explore what Eskom’s debt relief would mean for the taxman and under what conditions it could be done credibly.
This follows Finance Minister Enoch Godongwana’s commitment in the February budget that a solution to Eskom’s debt would be finalized within a year. Godongwana also said it was also up to Eskom to take steps to repair itself, selling assets and cutting costs to demonstrate that it would not find itself in the same situation later.
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