R230 billion government bail out of Eskom is not enough

Die Vryburger

R230 billion government bail out of Eskom is not enough
R230 billion government bail out of Eskom is not enough. Photo: Die Vryburger

Despite the R230 billion the ANC president promised to Eskom over the next ten years, they have their hands out again, asking the government for further assistance.

At this stage, it appears that the government is going to trade Eskom’s debt for government bonds or through the creation of a special account.

According to the Treasury, the problem at Eskom is “big and complex” which leads to the country’s rating crisis. President Ramaphosa has on several occasions tried to appease the rating agencies with a “workable” plan without abusing public funds.

Eskom’s debt at the end of March amounted to R440 billion, and considering that the country’s total gross domestic product amounted to $ 366 billion in 2018, it shows how serious the crisis is.

Read the original article in Afrikaans on Die Vryburger

South Africa Today – South Africa News

SOURCEDie Vryburger