TAP will pay a minimum interest of 3.78% for the State loan

  • ECO News
  • 25 June 2020

TAP can receive up to 1.2 billion euros in state aid, with a minimum interest rate of 3.78% on the state loan.

TAP will have to pay a minimum fee of 3.78% to access the State’s capital injection, which can reach up to 1.2 billion euros. To this minimum interest can be added at least another 50 basis points, raising the minimum rate to 4.28%, if the aid is extended, advances Jornal de Negócios.

The definition of this interest rate takes into account the difficulties in which the airline finds itself, and in the negotiations with the European Commission, the state tried to ensure that TAP was not considered to be in difficulties in the period before the pandemic, to have more helpful support, but Brussels did not accept.

The loan to the airline has already had the “green light” from Brussels, but conditions have yet to be negotiated between private shareholders and the state. This financing has a six-month maturity, and both TAP’s CEO, Antonoaldo Neves, and Miguel Frasquilho, Chairman of the Board of Directors, have already admitted that it will not be possible for the company to repay the amount within this period.