SAA to get $400 million capital injection after plea for cash – CEO

The Treasury said it would follow its normal budgetary process, which entails seeking cabinet approval.

“The outcome of this process is expected to be finalised in time for the 2018 MTBPS (Medium Term Budget Policy Statement),” the Treasury said.

The MTBPS is usually presented to parliament in October.

Jarana said that while waiting for the funds, the company would negotiate for some breathing space with lenders.

“If Treasury needs a certain period of time to do this, lets say up to September, between now and then, we are negotiating with lenders to give us a bridging facility on the back of that commitment,” he said.

SAA is regularly cited by ratings agencies as a drain on the government purse, but the Treasury is hopeful that new executive leadership led by Jarana, a former executive at telecoms company Vodacom, would return the airline to profitability.

The government has said that SAA needs an equity partner to pump money into the company to address its liquidity crisis and to help with the implementation of a turnaround plan.


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