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South Africa eases defence firm Denel's bailout terms

JOHANNESBURG, Nov 6 (Reuters) - South Africa’s government has eased the terms of a bailout given to state defence company Denel for the financial year that ends in March 2021, a senior official told Reuters.

Denel was allocated 576 million rand ($37 million) to pay off guaranteed debt, but the company asked the government to allow it to use the outstanding 271 million rand to support activities that would generate revenues.

“The Minister of Finance indeed waived the conditions and allowed Denel to use the funds for any purpose apart from paying off guaranteed debt,” said Kgathatso Tlhakudi, director-general of the Department of Public Enterprises.

$1 = 15.7271 rand Reporting by Alexander Winning Editing by Joe Bavier

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