South Africa's cabinet to make final decision on SAA by end Sept: Gigaba

South Africa’s cabinet will make a final decision on how to recapitalise state airline South African Airwaysby end September, Finance Minister Malusi Gigaba said Friday. “Before the end of September, we should have gone to cabinet, proposed the options and cabinet should have taken the decision,” Gigaba said. “What is a fact is that there is a 10b rand capitalisation that is required for South African Airways but the source or model of that recapitalisation is not yet finalised.” Gigaba said the other options include a share equity, public-private partnerships and “a full share swap in regard to the Telkom shares.” South Africa is considering selling its stake in landline provider Telkom to fund SAA’s 10b rand bailout. The government holds a stake of about 39% in Telkom. Credit ratings agencies say SAA should be reformed and cite the cost of propping it up as a threat to South Africa's credit rating. S&P Global Ratings and Fitch have downgraded South Africa's credit to "junk" status.<br/>