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Image header Agence Europe
Europe Daily Bulletin No. 12764
Contents Publication in full By article 18 / 35
ECONOMY - FINANCE - BUSINESS / State aid

Green light for a €1.2 billion Portuguese loan to TAP and opening of investigation into further support of €3.2 billion

The European Commission decided, on Friday 16 July, to re-approve €1.2 billion rescue aid to Transportes Aéreos Portugueses SGPS S.A (‘TAP Air Portugal’) and to open an investigation into €3.2 billion Portuguese further restructuring aid in favour of TAP

On 19 May 2021 (case T-465/20), the EU General Court annulled the original rescue aid decision. The Court gave the Commission the possibility to adopt a new decision within two months. The Commission has therefore re-approved the rescue aid and specifies the reasons for the authorisation in relation to the situation of the TAP group and its shareholders in June 2020.

On 10 June 2021, Portugal formally notified to the Commission €3.2 billion restructuring aid, with the aim of financing a restructuring plan of TAP Group through TAP Air Portugal. This support would take the form of €2.73 billion of equity and quasi equity measures, which include the €1.2 billion rescue loan to be converted into equity.

Additional support of €512 million, in the form of a State guarantee to market loans, may be granted by Portugal as of 2022.

On 19 May 2021 (case T-465/20), the General Court of the European Union annulled the original decision on rescue aid (EUROPE 12722/24). The Court gave the Commission a possibility to adopt a new decision within two months. (Original version in French by Lionel Changeur with MB)

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