Eskom faces severe measures from the National Treasury. Due to its failure to comply with the attached restrictions, Eskom will forfeit a portion of the debt relief that it was previously granted.
Eskom Faces Severe Measures from the National Treasury
Eskom’s failure to comply with the associated requirements forfeited part of the debt relief that the national treasury had previously given to it. In the current fiscal year and the next, the government will give Eskom R76 billion and R64.2 billion, respectively, according to the budget review released by Treasury on Wednesday.
According to the report, “Transfers in each of these years are R2-billion lower than projected as a result of the entity’s failure to conclude disposal of the Eskom Finance Company, as stipulated in the debt-relief conditions.”
Well, the ruling demonstrates that the Treasury is standing by its position that indebted state enterprises will only receive assistance if they fulfill stringent requirements, such as putting recovery plans in place and selling non-core assets.
The Government Awarded the Utility an R254 Billion Debt-relief Package to Improve Eskom’s Financial Standing
To help Eskom improve its financial standing and put an end to the daily disruptions that have hampered economic growth, the government awarded the utility an R254 billion debt-relief package last year.
According to the budget review, the Treasury is collaborating with the World Bank’s private lending arm, the International Finance Corporation, on “short-term options for off-balance sheet financing” to speed up private sector investment in South Africa’s transmission network “without negatively affecting Eskom’s balance sheet and the fiscus.”
The strategy will be tested through a pilot project, and by the end of July, proposals are anticipated, according to the statement.
Treasury Claims that it has Given State Port and Freight Train Company Transnet Authorization
Treasury did not refer to a report by German consultants Vgbe Energy that offered suggestions for reducing operational inefficiencies in Eskom’s coal-fired power stations. Before the utility received the report late last year, Godongwana stated that the measures would be implemented.
Treasury said separately that it has authorized state port and freight rail operator Transnet to utilize only R14 billion of the debt guarantee, out of the R47 billion it was awarded late last year, to settle maturing loans in the four months leading up to March.
ALSO CHECK:
- Eskom Internship 2022/2023 Program For African Students And Graduates – Apply Now!
- Edinburgh Global Undergraduate Mathematics Scholarships 2024 | APPLY NOW
- Sustainability Open Innovation Challenge 2023/2024 (Over $3,000,000 In Support) – APPLY NOW
- World Bank Treasury Summer Internship 2024 – APPLY NOW
- Best Place to Invest Money Without Risk
