R10.5bn for SAA is no bailout, claims Mboweni: Why this may well be true

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
0:00
play article
Subscribers can listen to this article
SAA's rescue practitioners responded that they await further details.
SAA's rescue practitioners responded that they await further details.
Silas Stein/picture alliance via Getty Images

Despite South African Airways finally being allocated the precious R10.5 billion it needed in terms of a business rescue plan accepted in July, nothing much can happen until bridging capital is obtained, most likely from banks.

This is because money allocated in Finance Minister Tito Mboweni's mini budget, announced on Wednesday, will only become available in January next year. Since SAA's rescue practitioners have effectively "mothballed" the airline due to a lack of funds, nothing much can happen until bridging finance is obtained or until the R10.5 billion allocated in the mini budget becomes available in January.

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism. You can cancel any time.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
16.16
+0.8%
Rand - Pound
21.49
+0.3%
Rand - Euro
18.23
+0.2%
Rand - Aus dollar
11.52
+0.2%
Rand - Yen
0.14
+0.0%
Gold
1,784.02
-0.5%
Silver
22.85
-1.3%
Palladium
1,793.50
+2.4%
Platinum
969.50
+1.5%
Brent Crude
72.72
-11.6%
Top 40
63,601
+1.9%
All Share
70,009
+2.0%
Resource 10
65,581
+2.4%
Industrial 25
93,900
+1.1%
Financial 15
13,460
+3.6%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot