Latvian parliament backs possible state role in stabilizing airBaltic's finances
Latvia's Saeima on Thursday gave conceptual approval for possible state involvement in stabilizing the finances of national carrier airBaltic, including buying bridge-financing bonds and converting existing debt into capital. A final decision on exact terms is still to follow.
The Latvian parliament, the Saeima, on Thursday gave conceptual backing to a possible state role in stabilizing the finances of national airline airBaltic. Lawmakers approved in principle that the state could take part in purchasing the airline's bridge-financing bonds, up to a value of 30 million euros.
Converting existing bonds
The Saeima also backed the idea of capitalizing airBaltic's existing bonds worth 50 million euros. This would mean converting part of the airline's outstanding debt into equity, easing the financial burden on the carrier.
What comes next
The vote represents conceptual support only, opening the way for more detailed proposals on how the state could take part in stabilizing the airline's finances. Exact terms and amounts may still be refined as the legislative process continues.
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