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Air Baltic receives legislative support for financial stabilization in Latvia
The Latvian Saeima has passed a financial stabilization law for Air Baltic Corporation through an expedited second and final reading. The legislation enables the state to manage its financial interests in the airline through inter-financing, the purchase of bonds, and the capitalization of claims. The vote saw 54 deputies in favor, 21 against, and one abstention, with the Union of Greens and Farmers (ZZS) party opposing the measure.
As part of the ongoing financial restructuring, Air Baltic bondholders have approved the capitalization of interests for bonds totaling 380 million euros. Additionally, the Latvian government has been granted the opportunity to purchase an additional 30 million euros worth of the airline's bonds during an extraordinary session.
Experts note that Air Baltic requires approximately 500 to 600 million euros in total funding, suggesting that state-level financing may be the only viable path. While the airline remains a significant national brand, the continuous use of public funds has drawn criticism regarding the long-term impact on other sectors like economic development and social services.
Entities
Air Baltic · Andris Kulbergs · Artis Velšs · Latvia · Saeima
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Air Baltic needs approximately 500-600 million euros in funding. www.aripaev.ee
- [○ 1 SOURCE] The law allows the state to manage its financial interests through inter-financing, bond purchases, and claim capitalization.
- [○ 1 SOURCE] The government has the option to purchase an additional 30 million euros worth of Air Baltic bonds. www.aripaev.ee
- [○ 1 SOURCE] Bondholders approved the capitalization of interests for bonds totaling 380 million euros. www.aripaev.ee
- [○ 1 SOURCE] 54 deputies supported the bill, 21 were against, and one abstained.
- [○ 1 SOURCE] The Saeima passed the Air Baltic Corporation financial stabilization measures law in its second and final reading via an expedited procedure.