PIC will bail Eskom out only if there are ‘sustainable returns’
Cosatu has proposed a plan to use R250bn of pension money managed by the PIC to pay down Eskom’s debt
The Public Investment Corporation (PIC) says it has not yet been privy to any detailed document proposing the recovery, restructuring or refinancing of Eskom's existing debt, but says it would only invest in a credible business case that would earn sustainable returns for its clients.
Eskom is R450bn in debt and is seen by ratings agencies as the biggest risk to SA’s finances.
Trade union federation Cosatu has proposed a plan to use R250bn of pension money managed by the PIC to pay down Eskom’s debt in return for a range of undertakings by the government. The plan was received favorably by President Cyril Ramaphosa, Business Day reported on Wednesday. ..