×

S.Africa offers $600 mln loan backing to state airline

By Tiisetso Motsoeneng

JOHANNESBURG, Oct 2 (Reuters) - South Africa has approved a two-year 5 billion rand ($601.01 million) loan guarantee to keep troubled state airline South African Airways operating, the public works department said on Tuesday.

"The guarantee will enable SAA to borrow from the financial markets, thus ensuring that the airline continues to operate as a going concern," it said in a statement. ($1 = 8.3194 South African rand)

(Reporting by Tiisetso Motsoeneng; editing by David Dolan)

((tiisetso.motsoeneng@thomsonreuters.com)(+27 11 775 3122)(Reuters Messaging: tiisetso.motsoeneng.thomsonreuters.com@reuters.net))

Keywords: SAFRICA SAA/