EC approves Portugal's EUR1.2bn loan for TAP Air Portugal

Portugal's Government received (10-Jun-2020) EU approval to grant a EUR1.2 billion rescue loan to TAP Air Portugal. The loan will provide TAP with sufficient resources to address its immediate liquidity needs with a view to preparing a plan for the long term viability of the company. The commission found the loan will help avoiding disruptions for passengers in particular in view of the easing of travel restrictions and the upcoming touristic season. The European Commission also stated: "TAP has been facing financial difficulties already before the coronavirus outbreak, i.e. on 31-Dec-2019… TAP is not eligible to receive support under the Commission's State aid Temporary Framework, aimed at supporting otherwise viable companies". The Government of Portugal stated TAP will reimburse the loan or submit a restructuring plan within six months, to ensure the future viability of TAP. [more - original PR]