Talks underway to address SAA debt
SAA's debt of approximately R6.8 billion, matures on 30 September.
DEPUTY president, Cyril Ramaphosa, says any funds that are being considered to help address South African Airways (SAA) maturing debt will have to be appropriated through a special appropriations bill that will be introduced to Parliament. He also said that SAA was in talks with its lenders in a bid to find ways to get an extension.
“[The] SAA debt of approximately R6.8 billion, which matures on 30 September, will be resolved through a two-pronged approach. Firstly, any funds being considered will have to be appropriated through the special appropriation Bill which will in part assist the airline’s working capital and repay some of the maturing debt.
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“SAA is also negotiating with its lenders to extend maturing debt beyond September. The precise make-up of the quantum of extension of debt and repayment of part of SAA’s maturing debt will be announced by the Minister of Finance and the SAA Board at an appropriate time,” he said.
Meanwhile, the Deputy President said at this stage, there was no need to invoke Section 16 of the Public Finance Management Act to support SAA on the matter of monies owed to it by the Angolan government.
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“The position is that the new government in Angola has indicated that it will settle this debt,” he said.
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