Eskom conditionality
In the 2023 Budget, the finance minister allocated a debt-relief arrangement of R254bn for Eskom and subsequently tabled the Eskom Debt Relief Bill which was enacted in July 2023. The arrangement aimed to strengthen Eskom’s balance sheet in order to enable the utility to restructure and undertake the necessary investment and maintenance to restore the…
read more >>Transnet guarantee conditionality
Government has provided Transnet with a R47bn guarantee facility which is meant to support Transnet’s recovery plan, including meeting its immediate debt obligations. The conditions demand that Transnet focuses on its core activities and introduces private sector partnerships. These conditions are designed in part to ensure the reform of the entity and the broader logistics…
read more >>New framework including reform conditionality
To achieve financial sustainability, National Treasury has adopted increasingly stricter measures and approaches to bailing out SOEs. The framework is meant to manage bailouts to SOEs to reduce fiscal risks and induce reforms within SOEs and the sectors they operate in by attaching conditions to these bailouts, as evidenced by the bailouts to Transnet and…
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