Eskom and the National Treasury are negotiating with banks to extend a R15bn loan announced in February 2019. The loan is guaranteed by the state.
The banks are slow to extend the loan because of Eskom’s troubled finances, but it is urgently needed to keep Eskom running, two sources familiar with the negotiations told Bloomberg.
It is not clear whether Eskom has already used the full R15bn of the initial loan.
Eskom has debts in excess of R450bn, cannot generate enough revenue to cover its operating costs, and regularly instigates controlled power failures due to insufficient maintenance spending leading to power plants breaking down.
The talks on the extended loan will still have to be finalized in January, the sources said.
With the initial announcement last year about this loan, Eskom did not disclose which banks provide the financing.
“Eskom and the government are negotiating with the banks and the talks are confidential,” said the treasury in response to e-mail inquiries.