Finnair and the State of Finland have signed an agreement on a hybrid loan of maximum €400 million to support Finnair. The decision was made by the Plenary Session of the Government on February 18, 2021. The arrangement has the approval of the EU Commission’s competition authority in line with the European Union’s state aid rules. The company also stated that of the credit limit, approximately €350 million can be used by Finnair based on the state aid decision made by the Commission on March 12, 2021, and that the remaining approximately €50-million-share will be brought to approval by the Commission at a later stage.
The Commission has now approved the remaining €50-million-share and, therefore, the entire amount of €400 million is available for Finnair to use. Finnair is able to access the funds, if its cash or equity position would drop below the limits that have been defined in the facility’s terms and conditions. (£1.00 = €1.20 at time of publication).