These steps included repatriating funds from overseas and efforts to secure further short-term bridging facilities on the back of unutilised government guarantees to the tune of R2 billion, National Treasury said.
“Of the R14.4 billion in guarantees extended to SAA, the airline has R2 billion it has not utilised, which can be tapped for additional financing,” it said.
“National Treasury has been in contact with several of the lenders currently providing SAA with unguaranteed short-term facilities and indications are that the banks are not intending to withdraw their facilities at this time. Regular engagements with lenders have been taking place since 2014 and will continue until the airline is stabilised.”
Treasury added that the national carrier submitted a request for going concern status last month.
“SAA submitted its request for a going concern guarantee during December 2015. National Treasury is currently considering this request. The approval of the guarantee is essential for finalising SAA’s financial statements on a going concern basis.”
It added that Finance Minister Pravin Gordhan was overseeing efforts to focus on ensuring that the airline was stabilised and that its governance woes were resolved.
This meant appointing a full board and speeding up the process of appointing a permanent chief executive officer “as these are essential for stabilising the airline”.
Gordhan added: “The goal in the longer term is to ensure that the airline is able to operate without support from the state, as should be the case with all state-owned entities.”
He added that SAA “is open for business and will remain so”.
