• Clueless leaders

    Zim's leaders are clueless about managing the economy or leading the nation, says Malcom Sharara.

  • Govt is out of touch

    Journalists seems to know more than those paid to govern us, says Mandi Smallhorne.

  • Terry Bell's Inside Labour

    Private firms can't be blamed for picking up anything lucrative on offer, says Terry Bell.

All data is delayed
See More

Treasury working with SAA as Citigroup ends credit facility

Jan 12 2016 09:11
Rene Vollgraaff

Johannesburg - Treasury is working with South African Airways (SAA) to ensure the company has enough liquidity to continue operating after Citigroup cancelled a short-term credit facility.

SAA will issue a statement on Tuesday that explains the impact of the cancellation, SAA spokesperson Tlali Tlali said on Monday.

Treasury spokesperson Phumza Macanda confirmed that the government was working with the airline earlier on Monday by phone.

“We confirm that Citibank has withdrawn SAA’s credit facility,” Tlali said. “We will issue a statement on Tuesday in response to this development and to enable everyone to understand what this means for SAA from a cash flow point of view.”

Citigroup on December 24 cancelled a R250m facility for SAA, leaving the airline without cash, Johannesburg-based Moneyweb reported, citing an internal document of the national carrier. The lender won’t reinstate the facility without a government guarantee, the website said.

SAA, which is cutting costs to ease a dependence on state-guaranteed loans, accepted last month an instruction to lease five wide-body planes from Airbus, abandoning an alternative plan by chairperson Dudu Myeni and avoiding a $40m (R674m) payment that threatened its financial stability.

The carrier was instructed by Finance Minister Pravin Gordhan to proceed with the deal to lease A330-300s in line with a decision made by one of his predecessors, Nhlanhla Nene, who was fired by President Jacob Zuma on December 9.

The transaction was opposed by Myeni, who wanted the planes sold to a third party in South Africa that would then lease them to the airline.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

airbus  |  saa  |  citigroup  |  airbus swap deal



Company Snapshot

We're talking about:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Labour’s call for a cap on salary of high earners is?

Previous results · Suggest a vote