Airport, Estonia, Financial Services, Legislation, Loan, Transport

The installment is a part of the 8.3 million euro credit limit that the government approved on December 13 last year; by now the company has received nearly a half of the credit.

Initially the government planned that Estonian Air should be able to function with these finances till the end of April, fulfilling all its obligations to creditors. The strike threat of pilots caused an estimated 4 million euros damages though. This means that Estonian Air has means till the first or second week of March, Parts said in Thursday. He stressed that the situation is constantly changing.

The government's payments are a part of 8.3 million euro rescue aid that the European Commission hasn't yet approved. The loan's interest rate is 15% and loan redemption period 6 months. The installments are made every month and based on need. The state as the shareholder wants a report of current financial status of the company before every loan payment.

States can allocate two types of state aid, rescue aid and restructuring aid. The need for the latter is estimated at 50-70 million euros and the government hasn't yet submitted that application to Brussels since Estonian Air hasn't submitted a final restructuring plan. The government obliged the economy ministry to submit that plan by January 31.