Govt sets aside US$1b to cover SAA guaranteed debt
South Africa’s govt has set aside R16.4b (US$1.1b) over the medium term for South African Airways to repay guaranteed debt and to cover debt-service costs. The national treasury has disclosed the figure in its newly-released 2020 budget review. It states that the govt also anticipates that additional funding will be required to cover restructuring costs, following SAA’s placement under business rescue. The govt will need to “assess its appetite” for continued ownership of SA Express, says the review, given its “limited role” in the local aviation market. In an effort to progress towards fiscal sustainability the govt has cut the baseline of budget expenditure by R156.1b over the next 3 years – the equivalent of about 1% of GDP per year – compared with 2019 budget projections. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-02-27/star/govt-sets-aside-us-1b-to-cover-saa-guaranteed-debt
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Govt sets aside US$1b to cover SAA guaranteed debt
South Africa’s govt has set aside R16.4b (US$1.1b) over the medium term for South African Airways to repay guaranteed debt and to cover debt-service costs. The national treasury has disclosed the figure in its newly-released 2020 budget review. It states that the govt also anticipates that additional funding will be required to cover restructuring costs, following SAA’s placement under business rescue. The govt will need to “assess its appetite” for continued ownership of SA Express, says the review, given its “limited role” in the local aviation market. In an effort to progress towards fiscal sustainability the govt has cut the baseline of budget expenditure by R156.1b over the next 3 years – the equivalent of about 1% of GDP per year – compared with 2019 budget projections. <br/>
