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airBaltic receives Latvian government support for debt restructuring
The Latvian government has approved measures to ensure the financial stability of the national airline, airBaltic. This includes extending the deadline for the repayment of an 18 million euro state loan to December 30, 2025. A 2% annual deferral fee will be applied to the outstanding principal.
The State Treasury will continue to represent the state as an airBaltic bondholder. These actions follow a financial stabilization law passed by the Saeima on August 20, which empowers the Cabinet of Ministers to manage the company's financial situation and protect state interests.
Reports indicate that airBaltic faces significant liquidity challenges, having recorded losses of 70 million euros in the first quarter of the year. The broader rescue plan involves restructuring debt and potentially borrowing an additional 225 million euros to prevent insolvency. The Saeima has also authorized the government to purchase securities up to 30 million euros to support the process.
Entities
AirBaltic · Latvian Cabinet of Ministers · Latvian government · Ministry of Transport · Saeima · State Treasury of Latvia
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] A 2% annual deferral fee will be applied to the deferred principal amount. pmo.ee · jauns.lv
- [● 3 SOURCES] The Latvian government has supported extending the payment deadline for airBaltic's remaining 18 million euro state loan to December 30, 2025. pmo.ee · jauns.lv
- [● 3 SOURCES] The State Treasury will continue to represent the state as an airBaltic bondholder. pmo.ee · jauns.lv
- [○ 1 SOURCE] The airBaltic rescue plan involves a new borrowing of 225 million euros. nra.lv
- [○ 1 SOURCE] airBaltic losses reached 70 million euros in the first quarter of this year. nra.lv
- [○ 1 SOURCE] The Saeima has authorized the government to purchase securities up to 30 million euros. nra.lv