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Treasury approves R3bn SAA bailout
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South African Airways (SAA) has been given emergency state funds to help it repay loans of R3 billion to Citibank.

Treasury confirmed the latest lifeline in a statement on Friday afternoon.

The bailout from government's contingency fund brings transfers to the ailing airliner to more than R5 billion in the last two months.

Last month, it was revealed in Parliament that Cabinet was considering a R10 billion cash injection for SAA to prevent it from defaulting on its bank loans.

This week Finance Minister Malusi Gigaba denied that he was looking to the Public Investment Corporation for help.

Treasury says if SAA had defaulted on its loan with Citibank on Friday, it would have exposed the national fiscus, as it is the guarantor for a total debt exceeding R16 billion.

Spokesman Mayihlome Tshwete said: “The other portion is going to go towards working capital so that the airline can pay salaries, service providers and continue operating.”

Gigaba is expected to announce a further cash injection when he delivers his medium-term budget statement in October.

Source: EWN
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