TAP sale proceeds to reach Portugal only in 2028
Portugal expects no public debt impact from the sale of 49.9% of TAP before 2028, as EU competition clearance could take up to two years.
Portugal does not expect the sale of 49.9% of airline TAP to affect public debt before 2028, Finance Minister Fernando Medina said on Thursday, signalling a long regulatory timetable for a deal closely watched by investors and taxpayers.
Speaking at the presentation of the 2027 state budget, the minister said the government will decide this month which bidder has won the privatisation process and will then start proceedings with the European Commission’s competition arm. That review could take 18 to 24 months, he said, meaning the transaction would close only in 2028 and the debt impact would also be recorded then.
The minister said TAP’s privatisation will affect debt, not the budget balance, by reducing the state’s financing needs. Under Portugal’s privatisation framework law, proceeds from reprivatisations must be used for purposes including public debt repayment.
The sale of 49.9% of TAP, including 5% earmarked preferentially for employees, is in its final stage. Air France-KLM and Lufthansa submitted improved final offers on September 30, and the government is assessing them. After the winner is chosen, the state must still complete final negotiations, approve the contractual documents and secure regulatory authorisations before payment to the state and the transfer of shares can take place.
Originally published at Eco.pt