On April 30, 2024, the government decided to participate in the purchase of bonds of the national airline “airBaltic” worth up to 136 million euros under the same conditions and in an equivalent amount as private investors.
The purchase of “airBaltic” bonds will be carried out in accordance with the market rules and the conditions of the state aid of the European Union. The purchase of the company’s bonds will bring economic benefits to the state in the long term, as the state and private investors will receive quarterly interest payments. It is tentatively expected that “airBaltic” will open bond purchase offers next week.
On May 25 of this year, the annual Vistulavian water tourist meeting “Lielais Plost” will take place in the territory of the “Daugavas Loki” Nature Park.
SINCE
Last week, the Saeima adopted the government-directed amendments to the “Law on Budget and Financial Management”, with which the Minister of Finance is given the authority to use state budget funds with the support of the Saeima and the government for the purchase of fixed income securities of capital companies in which the state has a decisive influence. The purchase of “airBaltic” bonds would have no impact on the budget deficit.
The total value of the planned bonds to be purchased by the state is up to 136 million euros. From the mentioned amount, the debt of the “airBaltic” company to the State Treasury in the amount of EUR 36 million will be converted into new bonds.
The preliminary estimates of the airline “airBaltic” for the first quarter of this year show that the company’s revenues reached approximately 132 million euros, which is 26% more compared to the corresponding period last year. In addition, the number of transported passengers has increased by 20% compared to the first quarter of 2023, thus also recording the highest result ever for the first quarter.
Tags: state plans buy airBaltics bonds
