Can South Africa’s Treasury Afford Another Bailout?

South Africa is scrambling to secure extra funding to rescue South African Airways (SAA), which last month entered a form of bankruptcy protection in a last-ditch bid to save the state-owned company and around 10,000 related jobs. SAA was promised $139 million from the government and lenders respectively. But while the lenders paid up, the Treasury has yet to establish a mechanism for identifying and dispersing its share. The airline is one of several state entities, including state power company Eskom, struggling with debt after nearly a decade of mismanagement.

SOURCE: REUTERS AFRICA | BUSINESS DAY LIVE

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