SAA in talks to recoup R350-million in blocked funds from Zimbabwe

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The cash-strapped national carrier is in the process of recouping its blocked funds from Zimbabwe, which could go towards financing the airline’s business rescue plan.

SAA is in talks with Zimbabwe-based mining company Imani to repatriate blocked funds from the neighbouring country.

The move to recoup the blocked funds comes amid continuing uncertainty about where the funds required to finance the cash-strapped airline’s rescue plan will come from. Mail & Guardian, any funding that can come into SAA would go a long way towards alleviating that distress. When funds are blocked, a local firm can offer to pay part of the funds to the foreign firm in exchange for access to the local funds. In its final offer letter, Imani says it has over the past three years assisted JSE-listed companies to settle their foreign obligations through a RBZ-approved mechanism.

In its final offer of R350-million, in September, Imani says its offer to SAA is fair considering the “inherent foreign currency risk and the monetary policy uncertainty Zimbabwe has”. The airline’s legacy debt or blocked funds held in Zimbabwe trades at 30% less than the interbank rate , which is meant to be the official rate, according to Imani.that a response on the offer is expected at the end of October, subject to approval from the national treasury.The offer to acquire the loss-making airline’s blocked funds comes as the government scrambles to find the funds required to finance SAA’s business rescue plan.

 

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When government is proposing yet another bailout of R10bn - how is R350m going to make any dent at all?

😂😂😂😂😂😂😂😂 Good luck with that task.

But a drop in the ocean, completely unlikely to make any difference when your losses runs into Billions!SAA

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