South Africa’s plan to provide its struggling power utility debt relief and potentially write off municipalities’ arrears to Eskom Holdings will ultimately improve liquidity and cut funding risks for the government, according to Moody’s Investors Service. The proposed R254-billion of relief announced in February’s budget is aimed at strengthening Eskom’s balance sheet and covering all interest payments over the next three years, provided it brings in private partners to help operate its plants and the electricity transmission network.
