Parliament briefed on Eskom Debt Relief Amendment Bill

Eskom Debt Relief
17 Nov 2023

Parliament has been briefed on the 2023 Eskom Debt Relief Amendment Bill.

The bill was tabled in parliament on 1 November 2023 during the Medium Term Budget Policy Statement.

The bill aims to amend the Eskom Debt Relief Act of 2023, so as to provide for the payment of interest by Eskom on amounts advanced as a loan; to provide for a power for the Minister of Finance to reduce the amounts for the requirements for Eskom in the event of non-compliance with conditions; and to provide for matters incidental thereto.

Briefing the standing committee on appropriations, national treasury pointed out that interest on the Eskom debt relief package is being introduced to better reflect the cost of the arrangement with the interest charged being market related.

In developing the interest to be charged, treasury was “cognizant of the delicate balance that needed to be struck between ensuring that such interest does not negatively impact Eskom’s cashflows, while at the same time reflecting a fair market related rate”.

The Eskom Debt Relief Act of 2023 had provided that the debt relief would be an interest-free loan.

The standing committee was also briefed on the 2023 Division of Revenue Amendment Bill and the 2023 Adjustments Appropriation Bill tabled during the MTBPS.

The 2023 Division of Revenue Amendment Bill aims to amend the Division of Revenue Act, 2023, in accordance with the Money Bills and Related Matters Act, 2009; and to provide for matters connected therewith.

The 2023 Adjustments Appropriation Bill aims to effect adjustments to the appropriation of money from the National Revenue Fund for the requirements of the State in respect of the 2023/24 financial year; to delete a provision of the Appropriation Act, 2023; and to provide for matters incidental thereto.

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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