France ready to give financial support to Eskom

France is weighing providing financial support to South Africa’s indebted utility Eskom Holdings SOC Ltd., the Johannesburg-based newspaper Business Times reported.

South Africa plans to restructure loss-making Eskom, which is struggling under R450 billion ($30.3 billion) of debt, by separating the power utility’s generation, transmission and distribution businesses.

The company is seen as the biggest threat to the national economy and its last remaining investment-grade rating.

France is working on different plans to assist Eskom and with its own development agency is ready to provide financial support to assist with the utility’s restructuring, according to the Business Times, citing the French ambassador to South Africa, Aurelien Lechevallier.

The support would likely be structured as a multi-partner loan that could potentially include other nations such as Germany and South African development banks, the ambassador said.

Read: Fitch says South Africa’s credit rating reflects Eskom risk

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France ready to give financial support to Eskom