SAA is due for major debt redemptions of R14.2bn before March, which poses a risk to the fiscus if the debt is not rolled over, Treasury acting deputy director-general in the budget office Ian Stuart says. This is because the airline relies on R19bn in government guarantees. In an interview on the sidelines of a meeting of parliament’s two finance committees, which were briefed by Treasury officials on its response to public submissions on the medium-term budget policy statement, Stuart said that of the R14.2bn in SAA debt redemptions, R5bn was due by the end of November and R9.2bn before the end of March 2019. He said Treasury officials were assisting the department of public enterprises in its engagements with creditors who wanted to know whether SAA had achieved improvements in corporate governance, whether its cost-cutting measures had been effective and whether it was implementing its turnaround strategy. Medium-term budget policy statement documents indicated that SAA had foun...

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, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now