The Treasury's transfer of funds to SAA this week could add to toxic conditions that could lead to another credit rating downgrade, economists warned on Friday. The transfer of R3-billion to SAA from the National Revenue Fund to save it from defaulting on a loan with Citibank means that in the last two months the Treasury has advanced a total of R5.2-billion to the ailing airline. In June SAA urgently requested R2.2-billion to repay Standard Chartered Bank after it refused to roll over SAA's debt. The Treasury said on Friday that of the funds transferred, R1.8-billion was to settle the Citibank loan and the balance was earmarked for working capital, but it would not elaborate, except to say: "All other details will be contained in the Medium Term Budget Policy Statement on October 25." Iraj Abedian, CEO of Pan African Investment and Research Services, said: "It is very loose fiscal management because you cannot pay money under any circumstances to an organisation that has got no cre...
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