The Debt Relief Agreement for Eskom

The government will provide Eskom with debt relief totaling 254 billion rand. The advances from the government will come in the form of subordinated loans which will convert to equity, subject to certain conditions. It is credit positive for the company because it will strengthen its balance sheets and reduce pressure on its cash flow. But I was wondering whether it would address also Eskom's operational performance and the level of low-shading. Is there a separate plan to address the growing debt from municipalities? Yes.