Posts tagged with 'loan'

 

SAA crisis becomes ANC nightmare – No banking institution wants to borrow R2 billion for bankrupt government-controlled entity

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The competition to get SAA free will now begin, which the weakest state-controlled entity now has literally no value.

The government’s inability to live up to its promise and make another R2 billion available to SAA as the largest rescue buoy has now made the entity very shaky.

Salaries for January can still be paid, but after that it will struggle, and in the meantime Minister Tito Mboweni is trying to convince all the bankers in the country to borrow the R2 billion.

Approximately 12 flight routes were abolished, destroying thousands of people’s travel plans and those who were prepared had to be content to get on with Mango Shipping.

A week of complete chaos is over, but the outlook for this week is as bleak as it was last week.

According to press reports, it appears that many ANC members of parliament are in favor of liquidating the SAA to lighten the load on the state coffers.

Now, a new shipping company is considering, “what with a much better bus
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Brics Bank borrows bankrupt Eskom ‘R6 billion’ for battery system – Will the SOE ever be able to repay the loan and what happens if he is unable to do so?

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The bankrupt power provider has obtained a loan from the Brics Bank carried by five counties in the world, of which South Africa is one.

Eskom has secured a loan of R6bn with the aim to “store” electricity, which will work through a battery system.

The system will allow Eskom to store 360 MW across four provinces, but there are some resignations about the efficiency of its system, and some experts believe the money could have been better spent on setting up solar farms.

There are also concerns about Eskom’s ability to repay the loan at set times.

 
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Pay back the money Zuma! – Nkandla in VBS liquidators’ vision – cough up R7m or lose Nkandla

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The ANC’s Jacob Zuma is in a big financial crisis with his multi-million Rand loan he received from bankrupt VBS Mutual Bank and now has to pay back the money.

Along with that, there are the million Rand court costs to be paid while more court cases are being filed in an effort to be cleared of the debt.

The amount of more than R7 million borrowed from VBS can be claimed any day, and then Nkandla can be compromised.

Although the Nkandla complex was but controversially erected with the largest share of the cost financed from the state coffers, it is doubted how much the real value of the property is being erected in a strange rural area.

Meanwhile, it has been reported that Zuma is also still a full year in arrears with the payment of his loan.

According to News24, VBS Mutual Bank’s liquidator, Anoosh Rooplal, has filed an application with the Pietermaritzburg High Court for an order that will force Zuma to pay, or an order that the property may be confis
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Struggling airline under ANC control is apparently under extremely difficult financial circumstances and will now be rescued by commercial banks – This is the result of corruption and incompetence, celebrated in the ANC ranks

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South African commercial banks are basically prepared to help the instable SA Airways with R3.5bn as a lifeline.

The struggling airline needs the funds very urgently to meet his short-term obligations.

SAA’s Chief Executive Officer, Vuyani Jarana, says the amount is needed to maintain its operational duties until April.

Jarana, says it is clear that SAA is under “extremely difficult circumstances” and will not continue to function without the huge loan.

Meanwhile, ANC’s Cyril Ramaphosa, during his visit to India, said the SAA’s flights to the country should resume as well as the flights to the Emirates that were “stolen” from the SAA shipping company.

Read the original article in Afrikaans on Die Vryburger
This report does not necessarily reflects the opinion of SA-news.

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ANC-controlled city council of Vredendal wants to borrow R10 million from Standerd Bank – ANC ruling party is sinking deeper and deeper into debt!

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The ANC-controlled City Council of Matzikama (Vredendal and the surrounding area) will request approval at a Council meeting for taking an external loan at Standard Bank of R10 million.

The loan is in part financing of its 2018/19 capital budget. No further information is known about the term, repayment amount, interest as well as how the funds will be generated to service the nearly R100,000 per month payment.

Municipalities and government institutions were previously warned not to enter into loans to repay other debts or capital projects that cannot be repaid.

Read the original article in Afrikaans on Die Vryburger
This report does not necessarily reflects the opinion of SA-news

 

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Desperate times calls for desperate measures, but is this the right thing to do? After all financial losses occurred due to incompetence, negligence and corruption – SAA is borrowing R3.5bn from local banks

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South African Airways (SAA) received a R3.5bn loan to keep it going until the end of March.

This forms part of the R21,7 billion SA management believes is needs to make its turnaround strategy succeed.

SAA spokesperson Tlali Tlali confirmed the R3,5bn was received from local banks.

This comes after National Treasury gave R5bn to SAA in October last year to repay debt.

According to Tlali, SAA will not be profitable before 2021, but plans are on track to save the state-run airline from its money pen.

SA’s acting chief financial officer Deon Fredericks said in November that the airline needed the R3.5bn by March. According to Fredericks, SAA will suffer a R5.2bn loss in the current financial year to end-March, and a loss of R1.9bn in 2019-2020. However, SAA management has already warned the rise in oil prices could hamper its expected timetable for a return to profitability.

According to Tlali, SAA’s route between J
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