SAA may only be offered 5% of money owed by Zim

Source: SAA may only be offered 5% of money owed by Zim | Fin24

South African Airways, the national airline that’s entered business rescue, may only be offered 5% of the $60m (R874m) that its owed by neighboring Zimbabwe in funds from ticket sales and hasn’t been able to extract from the country.

The Reserve Bank of Zimbabwe’s Monetary Policy Committee plans to “reject the majority of debts” owed to institutions, a move it hopes will save the southern African nation much-needed foreign currency, Eddie Cross, a member of the committee, said.

The country is unable to pay for adequate fuel and wheat imports.

“We will ask that a haircut be taken by creditors,” said Cross in a December 5 interview in the capital, Harare.

Tlali Tlali, a spokesman for SAA, didn’t immediately respond to a request for comment.

In February, the central bank took over $1.2bn (R17.49bn) of legacy debt when it dropped the 1:1 parity between its currency and the US dollar. The Zimbabwe dollar now trades at 16.42 to the greenback.

Cross put the legacy debt at $2.6bn, more than double the central bank’s previously stated figure. He didn’t provide further details.

His comments on legacy debt echo similar views made last month by George Guvamatanga, the permanent secretary in the finance ministry, that institutions owed legacy debt should consider writing down some of the amount.

The International Air Transport Association (IATA) in July said foreign airlines were owed $196m by the southern African nation.

COMMENTS

WORDPRESS: 3
  • comment-avatar
    Cynical 12 months ago

    Money allocated to Ministers to buy luxury 4 x 4’s instead of paying airlines their dues.

    • comment-avatar
      ace mukadota 12 months ago

      And a Rolls Royce 4X4 for Minister Comrade Chasi of Zesa fame

  • comment-avatar
    ace mukadota 12 months ago

    ha ha SAA has finally woken up to the ZW way of doing business comrades – owe a USD & now offer funny money in payment – the ZW circus rolls on and on – but the RSA circus with Eskom & SAA acting to keep all the folks amused in that country at the same time.