Government explores measures to stabilize airBaltic's finances
Latvian public broadcaster LTV's "De facto" reports that the government is considering steps to stabilize the finances of national airline airBaltic, including delaying bond interest payments and raising new capital.
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According to a report by Latvian public television's programme "De facto", the Latvian government is currently exploring ways to stabilize the financial situation of national carrier airBaltic. The considered measures reportedly include several interconnected steps.
One option under discussion is postponing two bond interest payments, which would free up funds for the company in the short term. The government is also reportedly considering securing temporary financing of 225 million euros, as well as increasing the company's equity capital by 100 million euros.
The report also referenced the view that airBaltic entering insolvency would be regarded as the worst possible outcome among the scenarios being weighed, underscoring how important it is for the government to keep the airline operating and financially stable.
airBaltic is Latvia's national airline, and its financial situation has been a subject of discussion for some time. The measures reportedly under consideration by the government point to efforts to prevent further deterioration and ensure the company's continued operation.
