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25 July 2017 20:45 (South Africa)
Politics

France comes to the party with €1.2bn Eskom loan

  • Branko Brkic
    branko3048 a ray
    Branko Brkic

    Brkic is the founder and editor of The Daily Maverick.

    He has edited magazines on business and politics, technology, and wildlife. He has also published fiction and non-fiction books, most of them in Serbian. Though he has never pretended to be a reporter, his wide knowledge of politics (especially in America), combined with his experiences in a disintegrating Yugoslavia, gives him an unusual outlook on events in South Africa.

    Despite the vowel-poor surname, he tells anyone who asks that he hails from Hyde Park, Johannesburg, having spent most of his adult life in South Africa.

    Recent columns:

  • Politics
eskom france

The French have clubbed together to loan Eskom a small part of the money required to start building its planned new coal-fired power stations. That'll make for some sighs of relief around the board table, and more forthcoming money from other financiers.

Thanks to underwriting by that country's export credit agency, five French banks have signed a 12-year, €1.19 billion loan for Eskom. That money will buy French turbines, from Alstom, for the Medpui and Kusile power stations.

The amount is relatively small in the face of the almost R400 billion that Eskom plans to spend on new infrastructure, but it will help lever open other wallets. Both the World Bank and the African Development Bank will be far more likely to grant favourable loans now.

The deal also gets the Treasury off the hook somewhat; it indicates that the current crop of government guarantees should be sufficient to see Eskom through its current round of begging, at least.

Read more: Bloomberg, Reuters

  • Branko Brkic
    branko3048 a ray
    Branko Brkic

    Brkic is the founder and editor of The Daily Maverick.

    He has edited magazines on business and politics, technology, and wildlife. He has also published fiction and non-fiction books, most of them in Serbian. Though he has never pretended to be a reporter, his wide knowledge of politics (especially in America), combined with his experiences in a disintegrating Yugoslavia, gives him an unusual outlook on events in South Africa.

    Despite the vowel-poor surname, he tells anyone who asks that he hails from Hyde Park, Johannesburg, having spent most of his adult life in South Africa.

    Recent columns:

  • Politics

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