Moody’s puts SA on notice over Eskom bailout | IOL Business Report

  • 📰 IOL
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 51%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Moody’s puts SA on notice over Eskom bailout

Moody’s yesterday put South Africa on notice that it might downgrade the country following the further bailout of Eskom, which is likely to widen the government’s debt-to-gross domestic product and put further constraints on the already burdened fiscus.

“The lack of a strategy to return Eskom to more stable financial situation that would reduce the need for government support exacerbates the problem for the government,” Villa said. The latest financial support for the power producer means the government would have supported it with R49bn in the 2019/20 financial year and R56bn in the 2020/21 period and R23bn in financial year 2022, with at least another R100bn in the pipeline in the coming years.

Maarten Ackerman, the chief economist at Citadel, said the situation government is in right now is a negative one, from a fiscal and ratings perspective.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Moody sounds very Indian...just saying

What does Moody's want SA to do? It takes time and money to fix Eskom, so what now?

Strange ..... A company that supplies ±90% of homes in SA with electricity AND THEY CANNOT MAKE A PROFIT !!! SomethingStinks

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 46. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines