Business Maverick: ‘Too Big to Fail’ Eskom’s Debt Revamp Is Sensible, Nedbank Says

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 84%

United States News News

United States United States Latest News,United States United States Headlines

South Africa’s plan to take over part of Eskom Holdings SOC Ltd.’s 396 billion rand ($24 billion) debt is in the “the right direction,” because the power utility is “too big to fail,” Nedbank Group Ltd. Chief Executive Officer Mike Brown said.

A debt transfer plan for Eskom would be a key step toward turning around the engine that drives Africa’s most industrialized nation. Years of government bailouts and rolling power outages have weighed on the economy. Authorities will seek cabinet and parliament’s approval for the plan after determining the amount, along with the conditions the utility will need to meet before and following such a transaction.

“It’s going to take time, it’s complicated, legally and economically,” Brown said. “You’ve got to get the amount right, because you’ve got to take enough debt off their balance sheet so that they are actually sustainable, but not too much to give them a free ride and everyone has to be treated fairly.”to bring to end a 14-year-old power crisis.

The government also doubled renewable energy procurement to 5,200 megawatts. A move that will accelerate the country’s shift from a dependence on coal for more than 80% of its power toward the use of the nation’s abundant wind and solar resources. “Electricity supply is a binding constraint to growth and job creation, and hence the president’s plan to fix that,” Brown said.

 

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

I’m gradually making more earnings now in my trades but with the aid of a trader that was recommended and now I'm recommending her to y'all EliDonovan01

Cancel Eskom's odious debt to the World Bank

Greatest trader of all time James_Alderson8 I never believe it until I experience it For a start i deposited R50,000 to test the waters in 7 days I got a return of R500,000, he's diligence and honesty is undeniable. Thank you once again James_Alderson8

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:

 /  🏆 3. in US

United States United States Latest News, United States United States Headlines

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

Business Maverick: China’s banks rush to raise record debt as credit losses mountBanks in China are rushing to boost capital as they prepare for a potential spike in bad loans due to the economic slowdown and spreading housing crisis. A record amount of fresh money has come from financial markets, with banks selling 29% more bonds in the first half of the year compared to last year to replenish capital and cover credit losses.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: ECB’s Visco Says There’s a Risk of a Recession in EuropeEuropean Central Bank Governing Council member Ignazio Visco warned that there may be an economic downturn in Europe.
Source: dailymaverick - 🏆 3. / 84 Read more »