South Africa Raises Funds for State Airline to $1.1 Billion
- Finance ministry earmarks cash to service, pay down debt
- Level of funding compares with $600 million in October
Photographer: Waldo Swiegers/Bloomberg
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South Africa almost doubled the level of funding for the national airline to 16.4 billion rand ($1.1 billion), cash that will go toward supporting a restructuring plan for the technically insolvent carrier.
The bailout will be used to service and pay debt previously guaranteed by the state over the “medium term,” Finance Minister Tito Mboweni said in his budget speech in Cape Town on Wednesday. The amount compares with 9.2 billion rand earmarked for South African Airways in October.