Gigaba gives SAA another bailout
"Govt has decided to transfer funds from the National Revenue Fund (NRF) to South African Airways to allow the airline to pay back its debt to Standard Chartered Bank, thereby avoiding a default," the Treasury said. A default by the airline would have triggered a call on the guarantee, leading to an outflow from the NRF and possibly resulting in "elevated perceptions of risk related to the rest of SAA's guaranteed debt". Improving the financial positions of the airline through recapitalisation had been on govt’s agenda "for a while". Several options were being explored and an update would be provided during the medium-term budget policy statement in October. "Govt will do everything in its power to ensure that the airline's turnaround strategy is implemented," the Treasury said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-07-04/star/gigaba-gives-saa-another-bailout
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Gigaba gives SAA another bailout
"Govt has decided to transfer funds from the National Revenue Fund (NRF) to South African Airways to allow the airline to pay back its debt to Standard Chartered Bank, thereby avoiding a default," the Treasury said. A default by the airline would have triggered a call on the guarantee, leading to an outflow from the NRF and possibly resulting in "elevated perceptions of risk related to the rest of SAA's guaranteed debt". Improving the financial positions of the airline through recapitalisation had been on govt’s agenda "for a while". Several options were being explored and an update would be provided during the medium-term budget policy statement in October. "Govt will do everything in its power to ensure that the airline's turnaround strategy is implemented," the Treasury said. <br/>
