Billions for Eskom debt: This type of aid creates the obligation to establish a truly just energy dispensation
2 June 2022
The news agency Bloomberg reports that the United Kingdom (UK) is considering guaranteeing about R15,6 billion of Eskom's debt.
It could be very beneficial for the South African government seeing as the government is currently guaranteeing Eskom's debt.
The country's credit rating is, however, two points below investment grade, which drives up the cost of government debt and restricts its availability.
If this guarantee realises, it will form part of the support package of $8,6 billion (R134 418 billion) for a just energy transition, which America, the UK, Germany, France and the European Union (EU) promised during the COP26 climate summit.