BAIL-OUT REQUEST
SABC awaits Treasury response on government guarantee request
The SABC needs a government guarantee of about R1bn to stay afloat
The South African Broadcasting Corporation (SABC) is anxiously awaiting the outcome of its government guarantee request to the Treasury, amid concerns that SA’s credit ratings could worsen if contingent liabilities rise much further. Ratings agencies have raised concerns about SA’s pace of economic growth, which poses risks to fiscal consolidation and rising contingent liabilities. The SABC needs a government guarantee of about R1bn to stay afloat. At the weekend, South African Airways (SAA), the struggling national carrier, received a R2.3bn cash injection from the government to repay its Standard Chartered Bank loan, which lapsed at end-June. Communications Minister Ayanda Dlodlo’s spokeswoman, Pheliswa Sebati, confirmed that the revised funding proposal for the SABC had been submitted to the Treasury.
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