The Ministry of Public Finance (MFP) has not (yet) met all the conditions for the state-guaranteed loan to reach Blue Air.

The airline Blue Air requests the representatives of the Ministry of Public Finance (MFP) to fulfill, “as a matter of maximum urgency”, the last three suspensive conditions left unmet and necessary for granting the state guarantee by the Romanian Government by GEO 139 of August 19, 2020.

The Ministry of Public Finance (MFP) must draft and issue the guarantee agreement, initiate the approval of the Government Decision and issue the state guarantee, informs Agerpres.

In an open letter addressed to the Romanian Government, Oana Petrescu, the general manager of Blue Air Aviation SA, claims that one month has passed since the formal approval of the respective normative act and seven weeks since its approval in the first reading.

The Government approved, through the Memorandum adopted in the meeting of April 23, 2020, the granting of a loan of 300 million lei to Blue Air in order to cover the direct losses generated by the force majeure situation generated by the Covid-19 pandemic. In this process, Blue Air has demonstrated that it has the ability to resume operations on profitable terms and repay this loan in a maximum of 6 years.

By recovering the Blue Air activity, an impact is achieved on Romania's budget, which is strictly positive. This will avoid the direct effect of the Blue Air bankruptcy on this year's state budget as well as the negative multiplication effect on Romanian aviation and the national economy.

And after receiving the financing, the company will again become a significant contributor to the state budget. Once it reaches the level of activity in 2019, its contribution to the budget will again exceed 100 million lei annually.