DBSA defends SAA loan
Airline going out of business could devastate the aviation industry, and the disbursement carries zero risk, says bank
30 January 2020 - 16:04
The R3.5bn loan to SA Airways by the Development Bank of Southern Africa (DBSA) might not be irregular, but it is unusual.
The DBSA is an infrastructure bank with a mandate to finance social and economic infrastructure “to improve the life of people” and to “support economic growth”. It never lends short-term money and most loans are for five to 10 years. It does not have an enormous capacity to lend: disbursements for the entire 2018/2019 year were R9bn. The SAA loan will tie up a third of its disbursement capacity...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.