SABC News - Medium-term budget to give details on SAA budget:Friday 29 September 2017

Medium-term budget to give details on SAA budget

Friday 29 September 2017 20:13

Tshepo Mongoai

The Treasury announced on Friday that it has provided SAA with R3 billion.

The Treasury announced on Friday that it has provided SAA with R3 billion.(SABC)

National Treasury says the medium-term budget statement in October will shed the light on the impact of the R3 billion bailout of South African Airways (SAA) on government's finances.

Treasury has announced that it has provided the airline with emergency state funds to help it repay a debt of R3 billion to Citibank.

Citibank had been demanding that at least R1.8 billion of SAA's debt be paid by Saturday.

The bailout from the National Revenue Fund (NRF) brings transfers to SAA to more than R5 billion in the last two months.

Treasury's Spokesperson Mayihlome Tshwete says how the loan will impact on government's budgets would only be known when Finance Minister Malusi Gigaba delivers his first mini-budget.

“It is money that government collects from taxes and services; it is money in government account. What we need to do now is to regularise what that R3 billion means in the context of deficit and government budgets. All those details the minister will give in the mini-budget on the 25 October.”

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