The government approved in its meeting on Thursday, May 23, the state aid worth RON 471 million (some EUR 95 million) for the Romanian flag carrier Tarom, transport minister Sorin Grindeanu announced. The decision “represents an important step to save” the company, he said.

The minister also stated that the aid is granted based on a decision issued by the European Commission on April 29.

A large part of the funds, namely RON 214.3 million, represents restructuring aid that is to be granted in the form of capitalization in 2024. Meanwhile, RON 12.51 million represents the share capital increase carried out in 2023, and RON 244.22 million covers the rescue loan granted as individual state aid in 2020 and the updated related interest.

“Tarom will use the RON 214.3 million (for working capital) to cover the company's liquidity deficit and financial balance in 2024. These operations will create the context for the profitability of the company and its transition to profit as early as 2024,” Sorin Grindeanu said.

irina.marica@romania-insider.com

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