The International Air Transport Association (IATA) stated on Wednesday, December 7, 2022, that the number of airline funds due for repatriation but blocked by governments has hit $394 million in the last six months.
The body noted that blocked funds now total nearly $2 billion globally and in more than 27 countries.
The biggest five most indebted countries are Nigeria at $551 million, Pakistan at $225 million, Bangladesh at $208 million, Lebanon at $144 million, and Algeria at $140 million.
BusinessDay reports that IATA cited Nigeria’s $551 million debt, adding that funds repatriation issues came up in March 2020 when demand forex in Nigeria was high.
Banks were unable to service currency repatriations. Walsh said the Nigerian authorities engaged the airlines and are working to find ways to make the funds available.
Walsh cited Nigeria as an example of how the industry engagement with the government can work, adding that the meeting has led to the repatriation of $120 million of the trapped funds with a promise of a further release at the year’s end.
Daily Trust report that the global airline body called on governments to remove restrictions on airlines repatriating their earnings from ticket sales and other activities following international agreements and treaty obligations.
IATA also called on Venezuela to settle the $3.8 billion of airline funds blocked from repatriation since 2016, when the country last authorized funds for repatriation by the Venezuelan government.
Willie Walsh said in an email that stopping airlines from repatriating funds affects local economies, saying no business can survive if they cannot get paid, which also affects airlines.
Kingsley Nwokoma, a representative of the Association of Foreign Airlines in Nigeria, said that airlines sell tickets in minutes and seconds; hence the funds keep accumulating.
According to Nwokoma, the funds continue to grow every second as tickets are sold.
He said Nigeria owes half of Africa’s debt to foreign airlines.
CONTINUE READING…
Do you have any information you wish to share with us? Do you want us to cover your event or program? For Adverts or reports call/WhatsApp us on +2348072633727
News Update Osun State Police Command has launched an investigation into a violent clash involving…
News Update Senegal has won the African Cup of Nations hosted by Morocco after defeating…
Popular Afrobeat star, Afeez Adeshina, better known as Destiny Boy, is dead. Destiny Boy died…
THE Osun State chapter of the All Progressives Congress (APC) has cautioned the Eesa of…
News Update Diplomatic relations between the United States and several European countries have come under…
News Update THE Adamawa Progressive Elders Council has formally announced its endorsement of His Excellency,…