President Cyril Ramaphosa says Parliament will urgently table a Special Appropriations Bill to allocate a ‘significant portion’ of the R230 billion in fiscal support that struggling power utility Eskom requires.
He made the announcement during his State of the Nation Address to a joint sitting of both houses of Parliament in Cape Town.
Ramaphosa, however, did not say what proportion of the fiscal support would be allocated.
He says Eskom only has sufficient cash to meet its obligations until the end of October 2019.
“The utility’s financial position remains a matter of great concern though. For Eskom to default on its loans will cause a cross-default on its remaining debt and would have a huge impact on the already constrained fiscus. We will therefore have to address this matter, by tabling a Special Appropriations Bill on an urgent basis, to allocate a significant portion of the R230 billion fiscal support that Eskom will require over the next 10 years.”
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