South Africa to bail out indebted airline as it seeks buyers
JOHANNESBURG – South Africa’s government is talking with potential investors in the state-owned airline in an attempt to ease the continuing burden the company puts on the national budget.
“I am pleased to learn that there are conversations involving South African Airways and potential equity partners, which would liberate the fiscus from this SAA sword of Damocles,” Finance Minister Tito Mboweni told lawmakers in Cape Town Wednesday.
The government will repay loss-making SAA’s outstanding government-guaranteed debt of 9.2 billion rand ($629 million) over the next three years, the National Treasury said in the medium-term budget policy statement. Lenders are demanding a firm repayment plan as a condition for agreeing to extend more funding, SAA has said.
Source: iol.co.za
