Saeima allows airBaltic to delay state loan repayment, approves buying €30 million more in bonds
At an extraordinary sitting, Latvia's parliament extended the deadline for airBaltic to repay its state loan until the end of the year and approved state purchases of additional company bonds worth up to €30 million.
Latvia's parliament, the Saeima, held an extraordinary sitting on Thursday, August 20, where it approved measures giving national airline airBaltic more room on its state financing obligations.
Lawmakers extended the deadline for airBaltic to repay a loan issued by the state, pushing the due date to the end of this year.
The Saeima also approved the state's purchase of additional airBaltic bonds worth up to €30 million. In addition, the decision provides for capitalizing interest payments owed on the company's existing bonds, meaning those payments will be added to the principal rather than paid out immediately.
The measures concern the state's financial relationship with airBaltic as both a shareholder and creditor of the airline, easing pressure on the company to repay its debt in the near term.
