The South African Airways is said to be experiencing some financial setbacks due to loans and lenders. Dondo Magajane, who is the Treasury Director says that the South African Treasury plans to bring a special appropriation bill of a whopping R10bn, to parliament before the end of September. This was said in a statement released on Wednesday. As parliament will be in recess from next week Monday for two weeks, a special and urgent sitting will be held for this discussion. The situation is considered to be quite urgent and therefore Treasury will be making a special appeal a sitting in court. In a meeting in Parliament was said that South African Airways will need R2.4bn in working capital until end of March.
The urgency of the funds is ensued by the need to pay a R6.8bn loan before end of September. By the end of September the balance will start maturing. The urgency has also risen to attention because a number of lenders who were willing to roll over their loans now want to be paid.
The appropriation bill is said to serve as just a short-term measure ahead of the additional appropriations made in the medium term budge policy statement.
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