SARB will not bail out Eskom

[Jamie McKane]

SARB will not bail out Eskom

South Africa’s central bank won’t bail out the country’s troubled state-owned companies including power utility Eskom Holdings SOC Ltd. because it would fuel inflation, Governor Lesetja Kganyago said.

Speaking in interview Tuesday hours before the ruling African National Congress said it has asked the government to explore “quantity easing” to eliminate debt and raise funds for development, Kganyago said the central bank won’t consider stepping in because it will require printing cash.

[Bloomberg]

 

[Hemi300c]

TBA

 

[Polymathic]

Eskom will have to sell some of their powerplants.

 

[BBSA]

Not yet......

 

[Vox Populi Vox Dei]

The Treasury bails out Eskom though.

 

[R13...]

Well that explains the ANC SG's statement. They'll probably bail them out, given that they've promised to halve unemployment over the next 5 years and in their minds you don't do that by allowing those soe's to fail and leave near 60k people unemployed.

 

[LCBXX]

I thought Pravin fixed Eskom. Apparently he did such a great job that he is now tasked to fix SAA.

 

[TelkomUseless]

Well that explains the ANC SG's statement. They'll probably bail them out, given that they've promised to halve unemployment over the next 5 years and in their minds you don't do that by allowing those soe's to fail and leave near 60k people unemployed.

I agree 100%

 

[Former member 61586]

The Treasury bails out Eskom though.

This ^ (and of course the pension funds). Who said SARB would ever bail out Eskom?

 

[R13...]

The country can't afford to let Eskom fail unfortunately. Problem is that the ANC don't want to hear anything about what the doctor ordered and prefer their own muti over the doc's. I think the company can be saved but cant be done without cutting out the infected parts which are too busy poisoning the patient.

 

[IdlePhaedrus]

Fortunately, there are sober heads in the Treasury so that doesn’t come up but that doesn’t stop the fringe from talking about it.

Problem is, Ace isn't really 'fringe'. He is the ANC SG and it would appear the tail is wagging the dog.

https://www.dailymaverick.co.za/art...wer-play-to-ace-magashule-in-under-two-weeks/

 

[TheChamp]

Problem is, Ace isn't really 'fringe'. He is the ANC SG and it would appear the tail is wagging the dog.

https://www.dailymaverick.co.za/art...wer-play-to-ace-magashule-in-under-two-weeks/

He is as good as the support he gets from the NEC, Gwede was also an SG and how useless was he? The other faction should work on neutralising his support within the NEC. Until they get that right he will continue undermining everything.

 

[Temujin]

Best I charge everything... load shedding announcement imminent

 

[IdlePhaedrus]

He is as good as the support he gets from the NEC, Gwede was also an SG and how useless was he? The other faction should work on neutralising his support within the NEC. Until they get that right he will continue undermining everything.

Gwede is even more scary as minister of Mining, and now Energy. Am keeping a close eye on that one given outgoing Energy minister's position on SSEG < 1MW recently (Radebe).

What worries me most is that Ramaphosa has not spoken out yet on any of Ace's utterances for months. He is the president, it is his job, regardless of the NEC. All the commissions of inquiry are all very well, but they actually haven't achieved much yet (except for getting rid of Moyane, thanks to Nugent), but that hasn't stopped the PP from pursuing Gordhan.

Things are really borked at the moment, and our duly elected president isn't saying anything. Just platitudes.

 

[TheChamp]

Best I charge everything... load shedding announcement imminent

The same announcement we were supposed to get after the elections?

 

[Temujin]

The same announcement we were supposed to get after the elections?

Yes, but with a different date at the top

 

[BBSA]

Does the South African ship still have a captain?

 

[Kosmik]

The country can't afford to let Eskom fail unfortunately. Problem is that the ANC don't want to hear anything about what the doctor ordered and prefer their own muti over the doc's. I think the company can be saved but cant be done without cutting out the infected parts which are too busy poisoning the patient.

Problem is, there is no money.

 

[TheChamp]

Gwede is even more scary as minister of Mining, and now Energy. Am keeping a close eye on that one given outgoing Energy minister's position on SSEG < 1MW recently (Radebe).

What worries me most is that Ramaphosa has not spoken out yet on any of Ace's utterances for months. He is the president, it is his job, regardless of the NEC. All the commissions of inquiry are all very well, but they actually haven't achieved much yet (except for getting rid of Moyane, thanks to Nugent), but that hasn't stopped the PP from pursuing Gordhan.

Things are really borked at the moment, and our duly elected president isn't saying anything. Just platitudes.

Good point on the President, my opinion is that he is weighing up his options and doing careful considerations, what would be worse is him speaking and Ace over ruling him again and saying what he wants anyway. The problem I see is that the ANC is divided on this and Ace went ahead and said what he wanted, not even Godongwana or Tito can explicitly say Ace is talking nonsense, they are just stating a different position. It just does not make sense for people who were supposedly in the same meeting to come out and say so many different things.

 

[KleinBoontjie]

I thought Pravin fixed Eskom. Apparently he did such a great job that he is now tasked to fix SAA.

You didn't expect him to fix over 20 years of mismanagement, corruption and debt in the little time he was there? Same if a new ruling party were to take over from the ANC, they won't be able to fix the economy over night.