South African Airways (SA, Johannesburg O.R. Tambo) has been given until the end of October to settle ZAR5 billion rand (USD374 million) worth of maturing debt owed to domestic South African lenders led by Nedbank Group Ltd. and including FirstRand Ltd., Standard Bank Group Ltd., Barclays Africa Group Ltd. and Investec Plc.
According to Reuters, in his report of the Parliament on Friday, October 13, Finance Minister Malusi Gigaba said the relief could be extended to late March 2019 on condition that he announces an equity injection into the ailing state-owned carrier when he tables the medium-term budget policy statement (MTBPS) on October 25.
Last month, the Treasury was forced to draw on the National Revenue Fund (NRF) to pay off a ZAR1.8 billion rand (USD133 million) loan, owed by SAA to Citibank, that was due by September 30. Government is also considering various means to help recapitalize the carrier but has since reportedly abandoned plans to dispose of its 39% stake in Telkom valued at ZAR12.3 billion (USD909 million).
According to BusinessDay, the national telecommunications firm announced on Thursday, October 12, that it had removed its cautionary notice regarding government's plan to divest itself of its shares. The Treasury said this was because the option to sell this stake to fund the bailout was no longer an option.
