European Commission Approves State Aid for Romania's Tarom

It said the measure will contribute to ensuring the orderly continuation of air transport services, in particular on the numerous routes where Tarom is the only provider, and avoid disruptions for passengers, without unduly distorting competition in the Single Market.

The Romanian government notified the Commission earlier in February of plans to grant a rescue loan of RON176 million to Tarom, which faces an acute liquidity shortage, due to the steep increase in operating costs generated by its aging fleet over the last years. Without the aid, Tarom would no longer be able to fulfill its payment obligations while keeping operations running.

Romania committed to ensure the rescue loan would be fully repaid after six months, or Tarom would either submit a liquidation plan or carry out a comprehensive restructuring to become viable in the long-term. Such possible restructuring would be subject to the Commission's assessment and approval.

 

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.