24 June 2020
Finance Minister Tito Mboweni may have not allocated any new money to struggling South African Airways, but he has offered some financial relief to the Land Bank.
Mboweni on Wednesday tabled a supplementary budget as a response to the COVID-19 pandemic.
The Budget also includes a R3 billion cash injection for the struggling state bank.
Mboweni said the Land Bank is too important to the country to be allowed to fail and is key to food security.
The bank is the biggest lender to South African farmers, but defaulted on some of its debt and needed a cash injection.
Mboweni said government would allocate R3 billion to recapitalise the bank: “This bank holds 29% of South Africa’s agricultural debt. The National Treasury is supporting the Land Bank find a solution to its default and craft a long‐term restructuring plan. Details on this recapitalisation are provided in the Supplementary Budget Review.”
He said there were no spending intentions in this emergency Budget on other cash strapped SOEs like the South African Airways.
Source: Eyewitness News