FINANCE minister Enoch Godongwana says that the government will take over a significant portion of Eskom’s R400 billion debt.
Delivering his Medium-Term Budget Policy Statement (MTBPS) in Cape Town on Wednesday (26 October), the minister said that for at least a decade, the government has spent billions of rands supporting Eskom, the broken power utility, with limited improvements in the reliability of the electricity supply or the financial health of the company.
“To ensure Eskom’s long-term financial viability, the government will take over a significant portion of the utility’s R400 billion debt,” he said.
“While the selection of the relevant debt instruments and the method of effecting the relief is still to be determined, the quantum is expected to be between one-third and two-thirds of Eskom’s current debt.
“The debt takeover, once finalised, together with other reforms, will ensure that Eskom is financially sustainable,” the minister said.
The programme, according to Godongwana,
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