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S. African Official Floats $10 Billion Debt Forgiveness Plan

  • In return South Africa would guarantee coal plant closure
  • National power utility is struggling with debt burden
David Masondo
David MasondoPhotographer: Dwayne Senior/Bloomberg
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David Masondo, South Africa’s deputy finance minister, suggested that investors forgive about 146 billion rand ($10.2 billion) of sovereign debt in exchange for the national power utility meeting climate targets.

In order to transition from the use of coal to generate electricity to renewable energy Eskom Holdings SOC Ltd. will need to borrow about 400 billion rand, equal to its current debt, and will need a “complementary transaction” to achieve that, he said in a speech on Tuesday.