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Another Eskom bailout will have to be conditional, says Godongwana


Finance minister Enoch Godongwana mentioned Nationwide Treasury is caught between a “rock and a troublesome position” on whether or not to provide Eskom some other bailout.

Eskom Megawatt Park. Image Xanderleigh Dookey-Makhaza/Eyewitness Information.

CAPE TOWN – Finance minister Enoch Godongwana mentioned Nationwide Treasury is caught between a “rock and a troublesome position” on whether or not to provide Eskom some other bailout, which might convey the rustic down with it if now not supported.

Because of this, he mentioned, they are going to connect positive prerequisites to the long run monetary fortify for the suffering energy application.

The finance minister was once addressing Individuals of Parliament (MPs) on Thursday, an afternoon after tabling his Medium-Time period Funds Coverage Remark (MTBPS).

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Tabling the MTBPS on Wednesday, Minister Enoch Godongwana mentioned to make sure Eskom’s long-term monetary viability, the federal government will take over a good portion of the application’s R400 billion debt.

Godongwana mentioned on Thursday that failing to try this would disclose the rustic.

“Do we’ve a decision? We’re [stuck between] a rock and a troublesome position. If we don’t intrude, that’s why some folks say it’s too large to fail, Eskom would possibly default and in doing so drag the sovereign with them.”

He advised MPs that Eskom had gained billions in fortify up to now.

“As we rise up to this monetary 12 months Eskom has been given R230 billion so far.”

Godongwana mentioned the federal government must set up trade-offs after spending maximum of its cash on bailing out state-owned entities and on social grants.




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