CAPE TOWN - South Africa's government has amended its debt-relief terms for struggling state power utility Eskom so that loans to the company will be interest-bearing rather than interest-free, the National Treasury said on Wednesday at a mid-term budget review.

The treasury added that future loan payments to Eskom could be reduced in the event of non-compliance with the debt-relief conditions.

(Reporting by Wendell Roelf in Cape Town, and Kopano Gumbi, Anait Miridzhanian and Olivia Kumwenda-Mtambo in Pretoria; Additional reporting by Bhargav Acharya, Nellie Peyton and Tannur Anders in Johannesburg; Writing by Olivia Kumwenda-Mtambo; Editing by Alexander Winning)