Newsletter| New Development Bank president Kundapur Vaman Kamath says the bank is not worried about Eskom’s ability to repay the $780m (approximately R11bn) loan as it would be guaranteed by government and, should it fail, the state would have to cover it
So said the NDB president, Kundapur Vaman Kamath, who pointed out during a telephonic interview that approving Eskom’s loan application was a priority as the government, and Eskom in particular, were under strain.
Kamath said South Africa had an impressive uptake on the bank’s loans: more than $1.5 billion had been loaned to the country and, by the end of the year, the figure would have been increased to $2.4 billion. A NDB spokesperson said that Eskom had applied for a second loan for $300 million to improve its battery storage capacity.The bank had deliberately channelled more funds to renewable energy, Kamath said.
“We have a fairly strong pipeline and we are hopeful that by the end of the year we would have done $2.4 billion in loans to South Africa. We have an appetite to do more,” he said.Kamath said Brazil, which has taken up very little money in loans from the bank, had just streamlined its processes to access loans.
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