Big Eskom move needed in the Budget - even R200bn in debt relief not enough, warns investor | Business

Specialist asset manager Futuregrowth, a large investor in government debt, has warned that the debt relief for Eskom that is expected in Wednesday's budget must be fair to all types of creditors and big enough – well above 50% – to restore the company to sustainability.

But warns Futuregrowth, government needs to go big – even taking 50% of Eskom's debt will not be enough – if the company is expected to service its debt costs in the future. First, all debt holders must be treated the same, and no one set of creditors advantaged or disadvantaged over others. On the quantum, Constantatos says that in the past financial year, Eskom's debt service costs stood at R33 billion, but earnings before interest and tax came to R11.3 billion. This means that halving Eskom's debt and, therefore, its debt services costs to around R16.5 billion would still leave a R5 billion debt service gap that Eskom would be unable to meet.

_Business There's little functioning asset representing this debt. Pay the debt off, incur more debt and soon SA will be wondering where the functioning asset is.

_Business They must commit at least a trillion to Eskom

_Business Shifting the debt from eskom to govt is an accounting shell game.

_Business I still dont get it why is this Eskom top Management still getting those fat cheque monthend ...... coz what is that for

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Eskom debt albatross hangs over SA's plans to stabilise budget | BusinessFinance Minister Enoch Godongwana faces the task of incorporating a credible debt-relief plan for Eskom in the national budget while stabilizing government finances as record blackouts weigh on the economy. | News24_Business _Business eskomsalaryshedding , 40000 employees at Eskom that cannot fix anything so let's start Salary shedding stage 2,3,4 30% of their salary stage 5,6 40% of their salary and see how quickly the problem is fixed or no more load shedding then we start governementsalaryshedding _Business Haybo where is this so called minister of electricity wena Flash/Thor you not doing your job babba wena moera wen _Business eskomsalaryshedding , the highest paid sector in the country and they cannot fix a thing or keep it running let try this: stage 2,3,4 30% salary cut. stage 5,6,7 40% salary cut. see how quickly they fix this problem! Then governmentsalaryshedding
Source: News24 - 🏆 4. / 80 Read more »