Posts tagged with 'bailout'

 

Eskom ticking time bomb! – National power utility managed by ANC-regime, debt jumps to nearly R500-billion and is currently the biggest threat to the SA’s economy

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Embattled South African state power utility Eskom’s debt burden, described by Goldman Sachs Group as the biggest threat to the nation’s economy, has burgeoned, compounding the difficulty the government faces in formulating a turnaround plan.

The company’s debt is approaching R500-billion, according to data compiled by Bloomberg from public records, including bonds and issued loans, up from about R370-billion a year ago. While the utility declined to comment on the current number, its CEO, Phakamani Hadebe, last month put total debt at about R450-billion.

Eskom hasn’t been selling enough power to cover its operating costs and interest payments, and has been forced to implement rotating blackouts over the past few years to prevent a collapse of the national grid as its fleet of ageing and poorly maintained plants struggled to keep pace with demand.

President Cyril Ramaphosa announced plans earlier this year to split the company into three
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Cash-strapped SABC to receive yet another government bailout – The National Treasury, has, once again, been persuaded to open its coffers up to the embattled broadcaster

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The South African Broadcasting Corporation (SABC) will receive a much-needed government bailout, after failing to improve its financial position in 2019.

Government, by way of the National Treasury, has, once again, been persuaded to open its coffers up to the embattled broadcaster.

Telecommunications Minister Stella Ndabeni-Abrahams confirmed that the finance minister was expected to finalise the bailout plan, which includes guarantees on loan agreements, and, in due course, release the figures to the public.

SABC bailout “to prevent the broadcaster from collapsing”

While the Treasury has remained mum on details relating to the bailout, Ndabeni-Abrahams explained that the finance minister would sign-off on the agreement “to prevent the broadcaster from collapsing”.

Speaking to SABC News on the current challenges, both financial and operational, facing the public broadcaster, Ndabeni-Abrahams explained:

“It is in o
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South Africa Considers Handouts To Help Zimbabwe With Trouble Caused By… Handouts!

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The spiraling economic meltdown in Zimbabwe has prompted South African authorities to think about extending short-term credit to Harare and helping it to write off a $7.4-billion external debt.

In an interview with the Daily Maverick newspaper, South African Finance Minister Tito Mboweni said the two governments were discussing ways to settle Zimbabwe’s debt to the IMF, the World Bank and the Paris Club.

The sides were also weighing up the possibility of extending an existing credit facility which Zimbabwe had with the South African Reserve Bank.

Zimbabwe had previously provided collateral for the loan in the form of its holding of SA Land Bank bills, the minister said, noting the country had always repaid its loans under that facility in the past.

Experts say Harare is clearly desperate for a bailout from South Africa and/or any of its other allies to resolve an economic crisis which is slipping out of control.

Thousands of Zimb
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