Chinese in TAP rescue plan

 In News

A Chinese bank is said to be negotiating with the top brass at Portugal’s troubled national carrier TAP in a €375 million rescue plan.

The Chinese Government through the influence it has in private Chinese companies, is currently looking around the world for investment opportunities at bargain prices and Portugal has proved to be a reliable investment partner in the past.
This time the financial bailout would come from China’s largest bank, the Industrial and Commercial Bank of China.
TAP, which the Portuguese Government says it may have to 100% nationalise, will, from June, need between €350 and €375 million which would have to be borrowed from foreign banks to meet the airline’s immediate cash needs.
TAP, which already registered a hefty €111 million debt in 2019 but did improve its margins thanks to 17 million passengers, reducing its overall debt by 40% last year, is said to be in talks with three international financial institutions.
Investment funds have also signalled an interest in taking part in a post-Covid-19 rescue operation which would have to have the seal of approval from the Portuguese State which is the majority shareholder in the airline.
However, when quizzed on the operation to stabilise TAP’s financial accounts, official sources declined to comment.