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

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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.

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