Guiding consumers since 2009

Treasury assists SAA after it loses Citibank credit facility

By Ochega Ataguba

Following its withdrawal from a R250 million Citibank credit facility, on which it depended for short-term funding, South African Airways (SAA), may be at risk of running out of cash this month. However, the South African National Treasury is working with SAA to ensure it has enough liquidity to continue operating, said Phuma Macanda, Treasury spokesperson.

The country’s national airline has been going through precarious financial difficulties of late and it appears that the situation was further complicated by the cancellation of SAA’s Citibank R250 million short-term banking facility on 24 December 2015. Reportedly, this left the airline without cash and may derail the process of  re-establishing a more favourable financial outcome.

According to a report, an SAA internal document shows that the airline will have no cash available from 15 January 2016. As a result, SAA is said to be trading under insolvent circumstances and Citibank is not prepared to reinstate the facility without a government guarantee. It was also said that the SAA board has received warnings over the past six months from executive management that the risk profile of SAA has been raised in the market due to excessive borrowing.
Cash flow projections also show that SAA squandered money over November 2015 and is still struggling to repatriate all foreign payments.  

SAA spokesperson, Tlali Tlali told Justmoney on Monday, that the airline would respond shortly to the reports.

Recent Articles

Featured The newbies quick guide to tax season

Starting in September, the South African Revenue Service (SARS) kicks off tax season. But not everyone has experience in doing this. Every year, new employees and contractors enter the job market. So, what do these tax newbies need to know?

What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Deals

50% discount on kids’ clothes at Keedo

Price: Available on request
When: Daily
Where: Nationwide

KFC Crunch Sliders for R29.90

Price: R29.90
When: Daily
Where: Nationwide

Bakwena Spa Women’s Day Special

Price: From R699
When: 8-10 August 2020
Where: Western Cape and Gauteng


Latest Guide

Guide to debt rehabilitation solutions