The rand strengthened as much as 0.7% against the greenback, but was little changed shortly after Godongwana was done speaking. The yield on South Africa’s most liquid debt due 2026 did hold a decline, in a sign that investors are optimistic that the plan to transfer Eskom's debt to the state won’t have a dramatic effect on the government’s overall debt metrics.
The proposals went some way toward appeasing investors, but would still have the effect of seeing government debt stabilize at higher levels, said Robert Hoodless, an FX strategist at InTouch Capital Markets in London."The devil will be in the detail, and ultimately Eskom and wider South Africa must deliver on the promising words in the budget," he said.
The government will provide Eskom with three annual advances totaling 184 billion rand through March 2026 to repay maturing debt and cover interest costs. The funding will be converted to equity if Eskom meets its performance criteria. The bulk of the transfers will be financed through additional borrowing, the National Treasury said.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
WATCH LIVE | Finance minister Enoch Godongwana delivers 2023 budget speechFinance minister Enoch Godongwana is delivering the 2023 budget speech to the National Assembly in the Cape Town City Hall on Wednesday.
Herkunft: TimesLIVE - 🏆 28. / 59 Weiterlesen »
WATCH |Live updates: Finance Minister Enoch Godongwana delivers #BudgetSpeech2023The FATF Plenary will make its decision later this week on whether or not to put South Africa under increased monitoring, otherwise known as grey listing. We should be prepared for that possibility.
Herkunft: SowetanLIVE - 🏆 13. / 63 Weiterlesen »
Herkunft: News24 - 🏆 4. / 80 Weiterlesen »