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National Treasury agree R47bn guarantee with Transnet to support recovery plan
JOHANNESBURG - National Treasury has confirmed that Transnet will receive a R47bn guarantee facility, effective immediately to support the SOE's recovery plan and meet its immediate debt obligations.
National Treasury and the Department of Public Enterprises have been working with Transnet to find an urgent solution to the company’s problems, and the guarantee facility was discussed as the immediate lifeline for the business.
However, National Treasury has highlighted this support is not a capital injection but rather a gurantee and assurance to lenders that Transnet will make good on its debt.
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Of the financial support package the state logistics company will use R22.8bn to pay off its maturing debt.
The balance will deal with the operational issues that have weighed negatively on the country’s economy.