South Africa’s Eskom can service debt

South Africa’s Eskom can service debt

South Africa’s
state power utility, Eskom, is financially sound and will be able to
service its debt, a senior treasury official said on Thursday.

Earlier, finance
minister, Pravin Gordhan, told a parliament committee the government
had extended guarantees to Eskom from 174 billion rand to 350 billion
rand to enable it to continue with its power generation programme
through 2017.

“Backed by these
guarantees … when they complete (new power stations) Medupi and
Kusile, the energy that is going to be generated by these power
stations should actually enable Eskom to service its debt,” Lungisa
Fuzile, head of asset and liability management at the treasury told the
same hearing.

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