JOHANNESBURG - South Africa’s Eskom will ask local banks to reopen lending facilities that were suspended last year, its spokesman said on Monday, as the state utility seeks to drag itself out of a crisis that poses a risk to the country’s financial stability.
National Treasury will support Eskom’s bid to persuade South African banks to lend the utility R20bn ($1.66 billion), spokesman Khulu Phasiwe told Reuters.
The Johannesburg Stock Exchange said last week it may suspend trading of Eskom’s bonds.
This follows the appointment of a new board of directors for the power utility that took place this past weekend.
Jabu Mabuza the newly appointed Chairperson for the power utility is said to bring cofindidence back for the economy according to The Banking Association of South Africa (Basa).
“This is one of many opportunities to place South Africa back on the path of economic growth and job creation. Basa wishes the new Eskom board well in the significant tasks ahead,” said Basa managing director Cas Coovadia.