The Moody’s rating group described the government’s financial “help” to Eskom as negative as it puts a further burden on the country’s budget.
Medium term plans to make further money available in the October budget leave very little room for movement for Treasury. According to Moody’s, there is a lack of positive strategy to get Eskom’s finances stable.
Moody’s is currently the only rating group to place SA’s debt on investment rating. The possibility that the government itself will have to borrow more money is not far-fetched and further taxes can be levied on the country’s residents.
Money is now being borrowed to pay debt and, according to overseas experts, a state debt crisis is on SA’s threshold.
Read the original article in Afrikaans on Die Vryburger
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