Eskom receives R17.7bn bailout
23 Apr 2019 - by
Treasury has been forced to award Eskom a further R5 billion bailout from Absa to prevent a default, finance minister Tito Mboweni has said.
According to Mboweni, the Absa bailout comes after a loan from a Chinese bank failed to come through in time.
Eskom currently has R419 billion in debt.
Presidential adviser, Anton Eberhard, took to Twitter, adding that “Eskom is in deep trouble. It used to keep a cash buffer of R20 billion rand. That has gone.”
It is not selling enough power to cover its interest payments and operating costs due to years of mismanagement and cost overruns.
According to public enterprises minister, Pravin Gordhan, the power utility will require continual short-term bailouts until it is stabilised.