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Tuesday, July 23, 2019
The government of South Africa allocated an extra $4.24 billion to its beleaguered state-owned power utility Eskom over the next two years so it can service its debt. The funds were allocated through a special appropriation bill, according to a Reuters report.
Eskom fails to generate sufficient profit to meet its debt servicing costs and has required state cash injections to stay afloat.
The latest allocation, sourced from the government’s National Revenue Fund, provides 26 billion rand for the 2019/20 financial year and 33 billion for 2020/21.
“For the purpose of promoting transparency and the effective management of the amount … the Minister of Finance, in writing, may impose conditions to be met by Eskom before any part of the amount is transferred,” the bill read.
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