Banks are feeling increasingly nervous about an implosion of bankrupt state-owned airline SAA with Citibank being the second bank to refuse to extend its loan to the sinking company, in this case R1.8bn.

In June, Standard Chartered Bank refused to roll over its loan of R2.2bn to SAA. The move required the Treasury to step in with an urgent bail-out to settle the debt because the unprofitable airline had run out of cash and was not generating enough income to cover its operating expenses.

SAA has had to reach repayment terms with suppliers owed R750m and will not be able to repay the R1.8bn it owes Citibank, which is due at the end of September. The Citibank loan is one of several totalling R6.8bn, which all become payable at the end of September.

If you are already a subscriber, please click on the following link below to go to the full article: Citibank pulls plug on bankrupt SAA

If you would like to subscribe  to BusinessLIVE Premium to read the full story, please click here to subscribe.  

* Premium content is not yet available on the app. Please use the desktop site to subscribe.

Please sign in or register to comment.