This is what the Eskom bailout really means for SA
Tito Mboweni has some depressing news to pass on to us
The government might have to increase its borrowing requirement substantially for 2019/2020 given the increased R59bn funding for Eskom over the next two years and the possibility of significantly lower tax revenue, finance minister Tito Mboweni said in the national assembly on Tuesday.
The government might have to change its funding strategy and its current weekly bond issuance at levels beyond that which it had planned, and do so before the treasury tables the medium-term budget policy statement in October, Mboweni said.
“We are facing a very serious financial situation,” he told MPs during his introduction of the Special Appropriation Bill, which allocates R26bn to Eskom for the 2019/2020 fiscal year and R33bn for the 2020/2021 financial year...