Olga Constantatos of Futuregrowth on Eskom's unsustainable debt and Masondo's controversial proposal

On Tuesday, David Masondo, South Africa’s deputy finance minister, suggested that investors forgive about R146bn of sovereign debt in exchange for Eskom - the national power utility - meeting climate targets. This very controversial proposal, which Masondo termed a debt-for-climate-swap, would entail a portion of national debt, which he suggested could be R146bn, being forgiven by new or existing creditors. The National Treasury has reportedly said that Masondo’s comments are his personal views and not policy. Nevertheless, Masondo’s statement raised many questions about the potential repercussions of this proposal - should it become policy. In a bid to obtain more clarity on the matter, BizNews founderAlec Hogg spoke to Olga Constantatos, the Head Of Credit at Futuregrowth Asset Management, who said that Masondo’s proposal ‘actually raised more questions than answers.’ Learn more about your ad choices. Visit megaphone.fm/adchoices