Outletchristianlouboutin13

S. Africa’s Mboweni Says PIC Willing to Help Eskom Resolve Debt

(Bloomberg) — The Public Investment Corp., Africa’s biggest fund manager, is willing to help South African power utility Eskom Holdings SOC Ltd. resolve its debt crisis, Finance Minister Tito Mboweni said at the Bloomberg Capital Markets Focus virtual event Tuesday.



Tito Mboweni wearing a suit and tie looking at the camera


© Bloomberg
Tito Mboweni

“Most of the bonds actually are held by the PIC and the banks and so on,” Mboweni said. “Eskom treasury is working on this matter together with National Treasury of South Africa, to make sure we smooth out the bonds as they mature.”

Loading...

Load Error

Eskom’s debt had ballooned to 488 billion rand ($31.8 billion) by the end of March, almost 11% more than it owed a year earlier. The utility’s finances have deteriorated despite the government having given it 188 billion rand in grants and loans over the past decade.

“The key issue in South Africa is that Eskom must manage their business, they must manage their income stream and their borrowing program because all of us need Eskom to be successful,” he said.

Mboweni also said:

The country must adjust its expenditure patterns and ensure the debt-to-gross domestic product ratio doesn’t reach the 100% level.There are “green shoots” of a recovery in the economy, particularly in mining and manufacturing.He hopes an agreement can be reached with labor unions to freeze civil servants’ wages for the next three years.Any public-sector wage deal must be within the confines of a prudent fiscal framework.The government is edging closer to an understanding with the World Bank about securing a loan, but won’t accept that any conditions be attached to it.South Africa seeks a rebound in economic growth to 3.3% in 2021

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

Continue Reading

Source Article