Additional strict conditions added to Eskom’s debt-relief arrangement

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Government says Eskom’s R254 billion debt-relief arrangement has additional strict conditions.

It says the conditions will not be converted to equity at the end of the financial year if the power utility fails to comply.

National Treasury says the Finance Minister Enoch Godongwana may reduce the debt relief available to Eskom.

Government has also decided to convert the loan from interest-free to interest-bearing.

National Treasury director-general Duncan Pieterse says amendments to the Eskom Debt Relief Act will be tabled to outline the interest conditions.

“What we are changing is that we are making amendments to the debt proposing amendments to the Debt Relief Act to cater for interest on the loan and to cater for the minister’s ability to change the amount going forward should conditions not be met.”

“I think there has been quite good responsiveness from Eskom’s side in terms of meeting the conditions, but the one area that we are watching closely is the issue of the sale of the Eskom finance company which has not yet been concluded,” adds Pieterse.

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