RO Gov. to guarantee Tarom bank loans, Blue Air
The Romanian government will complete the notification procedure for the state aid granted to the two airlines Tarom (state-owned) and Blue Air (private) by the end of July.
The Ministry of Transportation announced it after the latest round of talks with representatives of the two companies on July 27.
State aid will take the form of a guarantee for bank loans that the two companies need to overcome the effects of the coronavirus pandemic on the aviation industry, Profit.ro reported.
The ministry did not disclose the amount of guaranteed loans for the two companies. Still according to previous information, the total amount would be 130 million euros distributed more or less equally between the two companies.
Both companies are facing pressing financial problems. Tarom has drawn up a restructuring plan, which will be submitted for approval to the Competitiveness Directorate of the European Commission in August. On the basis of this plan, rescue aid of 36.7 million euros granted to the company in February this year will turn into restructuring aid.
Blue Air, in turn, entered into a pre-insolvency agreement with its creditors to restructure a debt of 100 million euros.
(Photo: Colicaranica | Dreamstime.com)