EDITORIAL: The kink in the cable of Eskom’s debt

Market players could be forgiven for greeting last week’s news that the Treasury is working on a sustainable solution to Eskom’s debt problem with loud yawns. They have definitely heard this one before, more than once in the nearly four years since government first promised a solution to this supposedly urgent issue.

The problem, in essence, is that Eskom does not generate enough cash from its operations to service its debt — that is, to meet the interest payments and repay capital when the bonds or loans fall due, which now totals about R40bn a year. The gap continues despite steep tariff increases over many years...If you have already registered or subscribed, please sign in to continue.

Eskimo/Eskom - both in the dark ages..

Eskimo does not generate enough electricity in order to bill, sell enough electricity to generate the cash it needs to cover its debt. Obviously does not help the case when billions in spares are stolen.Corruption

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Source: BusinessTechSA - 🏆 24. / 61 Read more »