Eskom's financial woes exposed

Chris Yellend, energy expert, says Eskom’s projected liquidity is very low at the moment.

A final draft report from Eskom to its shareholder for the second quarter of 2017 ending 30 September 2017 paints an alarming picture of funding difficulties and declining liquidity, primarily driven by perceptions of poor governance.

The power utility said on Monday it was not insolvent but was facing serious liquidity issues and would be in “trouble” if the situation persisted.

Yellend says the financial problems at Eskom are worrying and should be addressed.

The energy expert says the power utility needs to borrow R330 billion in the next five years.

As a result, Eskom says it’s in discussion with banks to provide a short-term “bridge-to-bond” facility to mitigate funding risks and improve liquidity.


This article first appeared on 702 : Eskom's financial woes exposed


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