South Africa's Eskom ends CSA flirtation

No obvious benefit to posting collateral, says company's treasurer

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Caroline Henry, Eskom's treasurer

South African power giant Eskom has decided not to sign collateral agreements with its derivatives dealers, despite seriously considering it earlier this year. The company has been under pressure from some banks to sign two-way credit support annexes (CSAs) because its credit rating has been slipping, which translates into heavy Basel III capital charges. "We've come to the conclusion that we are not going to sign CSAs at present. We thought we were going to get pushed into that situation, bu