South Africa’s Biggest Labor Group Proposes Debt Plan for Eskom

South Africa’s biggest labor group is proposing that more than half the debt of state-owned Eskom Holding SOC Ltd. be put into a special purpose vehicle to help save the utility and avoid job cuts, Bloomberg News reported. The Congress of South African Trade Unions urged the government strike a deal with the Public Investment Corp., Africa’s biggest money manager, to help cut Eskom’s debt to 200 billion rand ($14 billion) from 450 billion rand, according to a document dated Nov. 10-11 and seen by Bloomberg News. Development finance institutions should also be involved, the group said. The debt restructuring would help diffuse a crisis that “threatens not only to implode the state but also the economy,” Cosatu said. “Not only are the jobs of workers at Eskom at risk, but in fact all workers in the event of Eskom collapsing.” Read more