Further reporting by Bloomberg<\/a><\/strong>.<\/em><\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/11\/Banks.png\")
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South Africa\u2019s biggest banks had extended loans and bonds in struggling state-owned enterprises (SOE) totaling R54.6 billion ($4 billion) by end September, according to central bank\u00a0data.<\/p>\n
Power utility Eskom Holdings SOC Ltd. and South African Airways are among\u00a0flailing\u00a0government entities indebted to banks.<\/p>\n
While the money invested is about 1.3% of each lenders\u2019 total assets, the amount at risk is also equivalent to almost 80% of the lenders\u2019 average annual net income.<\/p>\n
These losses are expected to extend further however, as a number of\u00a0state-owned enterprises are expected to post further losses. On Wednesday,\u00a0Chief financial officer at SAA, Phumeza Nhantsi, said that losses at the airline are\u00a0set to widen to R4 billion ($292.86 million) in 2017\/18 \u2013 up from a previous estimate of R2.8 billion.<\/p>\n
Last week, SAA said even with a government injection of R10 billion, the struggling airline will remain under-capitalised with a negative equity position of over R9 billion. Vuyani Jarana, SAA\u2019s CEO, said the airline had outstanding debt of R13.8 billion($1.01 billion) as of this month and that it needed to pay back domestic lenders and U.S. bank Citi R4 billion by March 2018.<\/p>\n
Eskom confirmed earlier in November<\/a> <\/strong>that it is also currently facing a cash reserve crisis, saying\u00a0it requires R20 billion to remain operational.<\/p>\n Further reporting by Bloomberg<\/a><\/strong>.<\/em><\/p>\n<\/a><\/p>\n
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