(Bloomberg) —
South Africa can fix the balance sheet of its loss-making power utility by transferring its guaranteed debt to the government’s balance sheet, according to the former chief executive officer of Goldman Sachs Group Inc. in sub-Saharan Africa.
Seen as the biggest risk to the nation’s economy, Eskom Holdings SOC Ltd. has received 133 billion ($8 billion) in bailouts since 2008 and is due to get another 112 billion over the next three years. Instead of sinking that money into a hole, the utility’s guaranteed debt should be moved onto the government’s books after negotiating for better terms with bondholders, […]
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