Eskom CEO Says Debt Swap the Best Option to Rescue Utility
- Ailing utility wants government to take over some of its debt
- Details of support package to be announced in annual budget
The headquarters of Eskom Holdings near Johannesburg,.
Photographer: Waldo SwiegersThis article is for subscribers only.
The easiest way to rescue South Africa’s beleaguered state-owned power utility would be for the government to assume part of its 419 billion rand ($30.7 billion) debt, Chief Executive Officer Phakamani Hadebe said.
“The debt swap is easy for the government,” Hadebe said in an interview in Cape Town on Thursday, shortly after President Cyril Ramaphosa announced plans to split Eskom Holdings SOC Ltd. into three units and provide it with financial assistance. “If the government has to first go borrow money and give it to us, that takes time.”