South Africa May Bail Out State Bank, Arms Company
- National airline also likely to receive funding in budget
- South Africa’s state companies are straining national finances
Denel has been bailed out before it has struggled to pay salaries in recent months.
Source: Denel
South Africa’s Treasury is likely to announce additional funding for the state arms company and a government-owned agricultural lender in this week’s budget, people familiar with the situation said.
Denel SOC Ltd., which makes attack helicopters and other weapons, will probably receive between 2 billion rand ($123 million) and 3 billion rand, the people said, asking not to be identified because the information hasn’t been made public. The Land and Agricultural Development Bank of South Africa will get 1.5 billion rand to 2 billion rand, the two people said. Both entities confirmed to Bloomberg that they are seeking money from the National Treasury.