South Africa Weighs Taking on Eskom’s $26 Billion Debt, IMF Says
- State power utility’s finances issue of particular concern
- Assuming Eskom debt will increase pressure on public finances
A electricity transmission tower close to the Eskom Holdings SOC Ltd. Lethabo power station in Vereeniging, South Africa.
Photographer: Waldo Swiegers/BloombergSouth Africa’s government is considering taking over part or all of Eskom Holdings SOC. Ltd.’s 392 billion rand ($25.8 billion) debt as it seeks to restructure the cash-strapped power utility’s loan obligations, according to the International Monetary Fund.
Eskom’s financial position is of particular concern and requires a decision on how to address its “unsustainable” debt levels, the Washington-based lender said in a statement published on its website following on-line meetings between its staff and South African officials. The local authorities are discussing whether the state should assume part or all of the debt upfront or continue making annual transfers of funds to the company, which could be higher than budget estimates, it said.