The Treasury planned to submit a special appropriations bill for R10bn to Parliament before the end of September to provide South African Airways (SAA) with the necessary capital to continue operating and to enable it to repay loans, director-general Dondo Mogajane said on Wednesday. It would form part of the R13bn that the airline says it needs as a recapitalisation over the next three years. At a meeting of Parliament’s standing committee on finance on Wednesday, it emerged that the bankrupt airline will need R2.4bn in working capital until the end of March 2018. The Treasury also needs to regularise the payment of R2.2bn for Standard Chartered Bank made after it refused to roll over its loan to SAA in June. An additional amount might be required before the end of September to repay part of the R6.8bn in loans maturing then. Citibank had indicated it did not want to roll over its R1.8bn loan, but Mogajane told MPs that negotiations with the bank and other lenders were continuing t...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00.