João Leão does not expect more cash injections In TAP

  • ECO News
  • 13 October 2021

The finance minister believes that the amount to be injected into TAP should not increase more than expected, stating that the effort of the Portuguese people will be "compensated".

Portugal’s finance minister believes that the amount to be injected into TAP should not exceed the planned €3.2 billion. In an interview with TVI24 on Tuesday, João Leão said the “effort of the Portuguese will be compensated”.

The government’s proposed State Budget for 2022 (OE2022) was released on Monday, in which an injection of €1.5 billion in the national airline next year is expected. TAP will receive a further €536 million this year, in addition to the €462 million capital increase carried out in May. In 2022, it will be granted another 990 million. Over three years, the state will inject a total of 3.19 billion.

“What has been presented will be sufficient,” the finance minister said. “The limit I have set is very clear. There is little risk of this figure being increased,” he added, noting that the restructuring plan envisaged for TAP is “very ambitious”.

In the same interview, João Leão said the government is confident that the plan will be approved by the European Commission by the end of this year. “Both the government and the ministry for infrastructure and housing are confident that it will be approved by the end of the year,” he said.

“The government understood that this is an important investment to make for the country. The effort of the Portuguese will be compensated for what TAP represents for the country,” the minister concluded.

To the aforementioned figures should be added a €1.2 billion financing granted in 2020, whose reimbursement was extended until the end of the year. Without a new cash injection, TAP will receive a total of €3.188 million, in line with the restructuring plan submitted to Brussels, which is still awaiting approval from the European Commission.