By Zuko Komisa
The government will take on the R254 billion debt of Eskom.
Finance Minister Enoch Godongwana has provided information on the comprehensive Eskom debt reduction strategy.
Municipalities owe R56.3 billion to Eskom.
Eskom will, in turn, offer “incentivised relief,” according to Godongwana, to municipalities whose debt is unmanageable.
“We are proposing a total debt-relief arrangement for Eskom of R 254 billion,”
“This consists of two components. One is R184 billion. This represents Eskom’s full debt settlement requirement in three tranches over the medium term. Second is a direct take-over of up to R70 billion of Eskom’s loan portfolio in 2025/26.” said Godongwana.
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The minister claims that the main economic barrier facing the nation is a lack of dependable electricity supply.
“The relief will come with conditions. And to avoid a repeat of debt build-up over time, the relief will attach measures, including the installation of prepaid meters, to correct the underlying behaviour of nonpayment and operational practices in these municipalities.”
BREAKING NEWS
— News Live SA (@newslivesa) February 22, 2023
“Government will Take on R254 Billion
of Eskom Debt”
Enoch Godongwana #BudgetSpeech2023 pic.twitter.com/Ao0nCU3cQN
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