ANNOUNCEMENT 24 Oct 2018

The government of South Africa approved a cash injection for the recapitalization of the South African Airways

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Republic of South Africa, Special Appropriation Bill, “South African Airways”. Available at: http://www.treasury.gov.za/legislation/bills/2018/[B36-2018]%20(Special%20Appropriation).pdf

National Treasury of South Africa, Medium Term Budget Policy Statement 2018. Available at: http://www.treasury.gov.za/documents/mtbps/2018/mtbps/FullMTBPS.pdf

Inception date: 24 Oct 2018 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

On 24 October 2018, the Ministry of Finance of South Africa in the Medium-Term Budget Policy Statement announced that through a special appropriation bill, the South African Airways SOC Limited (SAA) will receive a ZAR 5 billion (USD 344 million) bailout to settle the debt obligations of the company. Previously, in October 2017, the South African government allocated ZAR 10 billion (USD 687 million) to the SAA for the recapitalization of the company (see related state act).

On 30 October 2019, the South African government allocated ZAR 5.5 billion (USD 378 million) to the SAA.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
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