Gigaba could target R14bn Telkom stake for massive SAA bailout

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Finance Minister Malusi Gigaba. (Pic: Gallo Images)
Finance Minister Malusi Gigaba. (Pic: Gallo Images)

Cape Town – Finance Minister Malusi Gigaba has revealed the need to sell state assets in a bid to inject nearly R16bn into South African Airways (SAA) so it can repay loans.

Following Treasury’s R2.207bn bailout of SAA in June, Gigaba had to inform Parliament about where the money would come from. This occurred on Thursday, when he wrote to Speaker of the House of Parliament Baleka Mbete.

In his letter, he revealed that SAA has to pay lenders R15.963bn in 2017. The R2.207bn bailout was a part of this total amount, which was given to SAA to settle its debt with Standard Chartered Bank through an emergency guarantee on June 30. That leaves another R13.755bn that must still be paid, with cash SAA does not have.

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