The European Commission gave its green light, on Monday 8 March, to Latvia’s plan to grant up to €39.7 million for the recapitalisation of the State Joint Stock Company Riga International Airport.
These measures were authorised under the State Aid Temporary Framework, which was relaxed due to the Covid-19 pandemic.
The Commission found the recapitalisation measure to be in line with EU rules: Latvia committed to work out a credible exit strategy within 12 months after the aid is granted, unless the State’s intervention is reduced below the level of 25% of equity by then; - until the State’s participation in the capital has been repaid in full, the company may not distribute dividends or repurchase shares if these operations are unrelated to the State. In addition, until at least 75% of the recapitalisation is redeemed, a strict limitation of the remuneration of the company’s management, including a ban on bonus payments, is applied; - until at least 75% of the recapitalisation is redeemed, Riga International Airport is in principle prevented from acquiring a stake of more than 10% in competitors or other operators in the same line of business. (Original version in French by Lionel Changeur)