SOUTH Africa’s Treasury is finalising a plan to take over a portion of Eskom Holdings’ R396-billion debt as part of a process to place the struggling electricity company on a sustainable footing, a top official said.
The “broad brush strokes” of the debt transfer will be announced in the mid-term budget scheduled for October, Duncan Pieterse, head of assets and liability management at the National Treasury, said in an interview Wednesday.
The authorities will seek cabinet and parliament’s approval for the plan after determining the amount, along with the conditions the utility will need to meet before and following such a transaction.
The Treasury has done financial modeling around the debt transfer and appointed lawyers to advise it on regulatory and legal hurdles, including loan covenants, Pieterse said. It’s also working with Eskom to determine what needs to be done to ensure the state-owned company is sustainable after the debt transfer has
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