CAPE TOWN - Eskom has dismissed news reports that a World Bank loan may allegedly be recalled.
This comes after reports disperse over the weekend that the power utility may lose a loan from the World Bank.
The allegations come after the state-owned enterprise was on Friday downgraded from B1 to Ba3 by ratings agency, Moody’s.
The embattled power utility faces further downgrades if it cannot service a number of loans.
One of these loans is a payment to the African Development Bank, due at the end of this month.
According to Eskom’s latest financial statement, Eskom owes the African Development Bank an estimated R2.2 billion.
Whether the power utility will make a payment by the end of the month remains a concern.
Yet, Eskom’s national spokesperson, Khulu Phasiwe implies that the utility will make a payment.
“The bankers have been given assurance via Eskom that we still are committed to making the payments’, said Phasiwe.
Phasiwe also denied that certain loans have been recalled.
"People are talking about the World Bank and the loans and possibly recalling them. None of the bankers have sent us letters wanting to recall anything."
Meanwhile, reports suggest that the newly appointed Eskom board are set to face a whirlwind first week.
The new board, appointed last week is under the leadership of businessman Jabu Mabuza.
However, the power utility is reportedly imploding and is arguably the biggest risk to the South African economy.
Racing against time, the utility is expected to release an interim report for the six months ended September 30 last year.
The JSE has already threatened to suspend the listing of Eskom bonds if the utility did not meet the January 31 deadline.
The troubled state power utility, is due to release its delayed 2017 interim results on Tuesday.
Eskom must borrow about R60 billion a year in the next four years in order to complete its new build programme. Public Enterprises Minister Lynne Brown and Mabuza met on Wednesday this week to discuss the utility’s immediate priorities. The priorities are not difficult to figure out, though.
- BUSINESS REPORT ONLINE, ANA