19 January 2018
   
ED and Zambia’s Lungu in ‘open talks’
African leaders wait for an apology from Trump
ED Shocker: Mugabe, 93, forgot he fired me
UK-ZIM: Mnangagwa exploits Brexit chance
MDC-T devastated by Bennet’s death
30 ZRP bosses fired, CIO spies too
Parliament: 11 G40 ministers, MPs fired
MDC-T’s Gutu scoffs at party HQ ban
MORE NEWS
SOE DEBATE: Privatise most parastatals
‘Mobile money tax will get dodger vendors’
MORE BUSINESS
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
MORE SHOWBIZ
Tendai Ndoro special - says Ajax coach
Zim cricket official charged with fraud
MORE SPORTS
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
Citibank cancels loan facility to South African Airways: Treasury
11/01/2016 00:00:00
by Reuters
 
 
RELATED STORIES

JOHANNESBURG: Citibank has canceled a 250 million rand ($15 million) loan facility to state-owned South African Airways (SAA), the Treasury said on Monday, the latest blow to the cash-strapped airline at the centre of a political storm.

"We are aware that Citi has canceled a 250 million rand facility to SAA and are working closely with SAA on the issue to make sure there’s sufficient liquidity. We are unable to comment further," Treasury spokeswoman Phumza Macanda said.

An SAA spokesman said on Monday that he would respond "as soon as possible" to Reuters' queries. Citibank in South Africa did not immediately respond to queries.

SAA's financial woes were at the centre of a political storm in December when President Jacob Zuma axed former Finance Minister Nhlanhla Nene.

South African media reported that Nene was fired because of a clash he had with Dudu Myeni, SAA's chairwoman, over plans for a sale and leaseback arrangement via a third party with Airbus to purchase ten A320 aircraft.

After a market meltdown, Zuma abruptly reversed his decision to replace Nene with an unknown former mayor and brought Pravin Gordhan back to the finance post he had held from 2009 to 2014.

Gordhan promptly scrapped Myeni's plan in favour of the one Nene had signed off on, swapping the purchase of ten 320 aircraft for a lease of five A330-300 aircraft from Airbus.

The Treasury said at the time that the lease transaction would improve the airline's financial position and that further measures would be taken this year to stabilise it.

 

 



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker