SAA asking for R4 billion bailout, economy heading for junk status?

Die Vryburger

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SAA asking for R4 billion bailout, economy heading for junk status? Photo: Die Vryburger
SAA asking for R4 billion bailout, economy heading for junk status? Photo: Die Vryburger

South Africa’s economy is plunging into the abyss, and a recession for the country is imminent. This is the opinion of an expert in Pretoria following the extremely poor performance of the rand and the begging mentality of state controlled companies.

The latest begging action is now by the SA Airways who is asking government for R4 billion. If granted this will be a sure recipe for putting the country into a recession and will force Moody to downgrade the country to junk status.

Economists warn that SA Airways will not be able to recover and will eventually have to be sold. This due to the ongoing mismanagement by ignorant chief officers that get appointed.

SAA’s R3.5b billion short term loan expires at the end of June 2019, with a further R9.2 billion long term non serviceable loan.

Mike Schussler reports that the airline has now fallen so deep into debt that the end is in sight. Eskom’s “rescue” is, according to Schussler, much more important than that of SAA. A downgrade by agencies, such as Moody’s, is inevitable, SAA would be squeezing more money out of the Treasury.

Even SAA’s board member, Mark Kingston, says that another SAA lifebuoy can damage country’s economy.

Read the original article in Afrikaans on Die Vryburger

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