Embattled Eskom wants to shift R441 billion debt burden onto the state

Embattled Eskom wants to shift R441 billion debt burden onto the state

- Eskom Holdings recently told bondholders that it wants the government to absorb the majority of it's massive debt burden

- The utility claims that it can only sustain R150 billion of it's crippling R441 billion debt, according to company executives

- National Treasury revealed that by the end of the fiscal year in March, Eskom had used R295 billion of the guarantees offered by the state

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If Eskom has it's way, the South African government will be held responsible for the largest portion of its R441 billion debt.

This is what company executives recently announced to bondholders in London this week.

Only capable of sustaining R150 billion of this debt, the utility recorded a R20.7 billion loss for the previous financial year.

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The state-owned entity is hopeful that they will be able to transfer the guaranteed debt onto the government's balance sheet, reports BusinessLIVE.

March signalled the end of the fiscal year and saw the entity utilising R295 billion of the state guarantees put to their disposal, says National Treasury.

Eskom is praying for answers to some of it's most pressing concerns, hopeful that progress will be made in the proposal to split into three individual units.

Moody's Investors recently warned that Eskom's performance has worsened to the point that it needs urgent intervention to turn things around.

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Source: Briefly.co.za

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