TAP €1.2Bn loan deadline extended

 In Aviation, News, TAP

The deadline for national carrier TAP to repay the Portuguese State a €1.2Bn loan which expired today, has now been extended until the end of the year.

The loan had been granted on the back of a financing contract signed on 17 July, 2020, but was supposed to have been repaid by 1 September.
Should Brussels decide in favour of financial support for the airline’s restructuring plan, the date of the loan repayment will be “fixed in the TAP Group Restructuring Plan approved by the European Commission”, states a communiqué from TAP.
This month until the end of the year will be decisive for the airline as it hopes that its most important long-haul markets of Brazil and the US will make up for the rest of what has been a disastrous year.
The pandemic continues to make a dent in TAP’s accounts, but in the second half of 2021 the airline began to show signs of recovery. Nevertheless, it is still awaiting the lifting of restrictions imposed on important markets such as Brazil and the United States in order to enjoy a robust recovery in the last four months of the year.