Portugal Estimates TAP Will Get a Loan of 950 Million Euros

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(Bloomberg) -- The Portuguese government estimates the loan it will provide to airline TAP SGPS SA will be of 950 million euros ($1.1 billion), Finance Minister Joao Leao said.

That figure is the “central scenario” of the government’s forecast, Leao said at a parliamentary hearing in Lisbon on Tuesday.

The government said on June 10 that it expects to lend TAP as much as 1 billion euros this year out of the total 1.2 billion-euro rescue loan that was approved by the European Commission to help the airline meet immediate liquidity needs. Like other carriers, TAP had to halt most of its operations due to the coronavirus outbreak.

The airline has to prepare a restructuring plan that the government should then present to the commission within six months, Secretary of State for Treasury Miguel Cruz said in parliament.

The Portuguese state already controls 50% of TAP. Airline entrepreneur David Neeleman and Portuguese investor Humberto Pedrosa jointly own another 45% through the Atlantic Gateway venture.

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