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Riksgälden: Debt Office provides guarantee for Braathens Regional Airways
Debt Office provides guarantee for Braathens Regional Airways
The Swedish National Debt Office has issued a credit guarantee for a loan of SEK 200 million to the airline Braathens Regional Airways AB. The guarantee is being granted under the state guarantee programme for airlines that was introduced to mitigate the economic impact of the coronavirus pandemic.
The loan will run for five years, and the guarantee covers 90 per cent of the principal of the loan.
Background
To mitigate the economic impact of the coronavirus pandemic, the Debt Office, as mandated by the Government, is providing credit guarantees for airlines. The credit guarantees may amount to a maximum of SEK 5 billion in total, of which a maximum of SEK 1.5 billion may be for SAS AB. The guarantee for Braathens Regional Airways is the second guarantee that has been provided under the guarantee programme for airlines. The first guarantee issu
By David Kaminski-Morrow2020-12-31T13:11:00+00:00
Sweden’s national debt office has given a guarantee for a SKr200 million ($24 million) loan intended for Braathens Regional Airways.
The guarantee covers 90% of the principal for the loan, which will run for five years.
Sweden’s government has mandated the debt office to provide the guarantees to mitigate the economic effects of the pandemic.
BRA’s guarantee is the second to be provided under the programme for supporting airlines – the first having been issued on behalf of SAS.
SAS has since repaid the loan, says the debt office.
BRA suspended operations earlier this year in order to undertake a “reconstruction” of the company.