JOHANNESBURG - Government has approved guarantees of almost R100-billion for Transnet.
It's divided into two parts to cover debts and mitigate against credit downgrades.
R48.6-billion will be used to ensure all debt obligations are covered for the next five years.
An additional R46.2-billion will mitigate the impact of the credit downgrades on existing debt.
WATCH: Transnet bailout | Billions to cover debt and improve operations
The additional guarantees also ensure the entity maintains sufficient liquidity levels.
The latest guarantees follow government’s approval of R51-billion in guarantees to Transnet in May.
The allocation included R41-billion for funding requirements and R10-billion for liquidity management.