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The National Treasury says it has provided South African Airways with a R5b guarantee for a period of two years.
Treasury says the national carrier had requested recapitalisation, at an estimated cost of between 4 and six billion rand.
This will enable the airline to strengthen its balance sheet and order new aircraft.
Treasury says the guarantee will enable SAA to borrow from the financial markets, thus ensuring that the airline continues to operate as a going concern.
In terms of the guarantee, the SAA board had to develop a turnaround strategy, to be approved by Public Enterprises Minister Malusi Gigaba and Finance Minister Pravin Gordhan.
