CAPE TOWN (Reuters) - South Africa's Treasury will provide electricity utility Eskom with loan guarantees of 175.97 billion rand over the next 5 years to help it raise funds for spending requirements.
The Treasury said in its 2009 Budget Review, released on Wednesday, that the guarantees were in addition to a 60 billion rand, three-year direct loan to the company announced last year.
Eskom , which is battling to meet growing demand, plans to spend 343 billion rand over five years to boost capacity but a global credit crisis had raised borrowing costs making it different for the company to raise finance.
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