South Africa Should 'Take the Pain' for Eskom Debt: Goldman's Coleman

The transcript discusses Moody's decision to downgrade Eskom's outlook, not its rating, and the implications for South Africa. It highlights the challenges Eskom faces in restructuring its balance sheet and operating costs. The government is advised to take on Eskom's debt to reduce interest costs. Union support and government action are crucial for successful restructuring. The transcript emphasizes the need for a comprehensive plan to avoid a downgrade and manage sovereign creditors effectively.

What is the potential consequence if creditors do not support Eskom's restructuring?

Why might it be cheaper for the government to take Eskom's debt onto its balance sheet?