Originally Posted by
johan rebel
I'm amazed that the banks are not standing in line with suitcases stuffed full of money in their eagerness to keep SAA flying.
From the banker perspective it can be a weird situation. If SAA keeps getting cash from the goverment then the intrest payment can be quite sizable. It also allows you to be in the good graces of the goverment.
At the same time would you be willing to risk that much. The goverment guarantess a lot of SAA debt but it is the SA goverment. They can run out of cash themselves at any moment as they keep sinking deeper in to junk bond territory.