The South African Treasury might be forced to write down a ZAR23 billion rand (USD1.6 billion) investment into the debt-ridden flag carrier South African Airways (SA, Johannesburg O.R. Tambo), Business Day has reported.

Presenting its annual report on state-owned entities in the South African Parliament, the Treasury noted that even if the current restructuring plan succeeds, the carrier would post losses through the 2020 fiscal year.

The latest turnaround strategy also includes a proposed ZAR21.4 billion rand (USD1.5 billion) bailout over the next three years, which is yet to be approved by the Parliament and the government.

In addition to the write-down and the bailout, the carrier also has over ZAR19 billion rand (USD1.3 billion) in state guarantees, which are crucial for its ability to secure financing from any commercial banks.