NATIONAL NEWS - “Government has approved the transfer of funds from the National Revenue Fund to SAA to allow the airline to address the debt obligations to Citibank, thereby avoiding a default. Funds will also be used to assist SAA with its immediate working capital requirements,” said treasury in a statement on Friday.
“A default by the airline on the R3 billion would have triggered a call on the guarantee exposure totaling R16.4bn, leading to an outflow from the NRF and possibly resulting in elevated perceptions of risk related to the rest of SAA’s guaranteed debt.”
