Government Approves Nearly 500M Lei State Aid to Save TAROM

The government approved in Thursday’s meeting the state aid for TAROM, worth over 470 million lei, announced the Minister of Transport, Sorin Grindeanu, who says that the decision is an important step to save the company.

“Today, in the Government meeting, we approved the state aid for TAROM! This aid, with a value of 471.04 million lei, is granted based on a decision issued by the European Commission on April 29, 2024,” the minister wrote in a post on Facebook.

According to Grindeanu, the amount allocated has the following destinations: up to 214.3 million lei represents restructuring aid that is proposed to be granted in the form of capitalization in 2024, the amount of 12.51 million lei represents the increase in share capital carried out in 2023, and 244.22 million lei represent the loan granted as individual state aid for rescue in 2020 and the updated related interest.

“TAROM will use the 214.3 million lei (for working capital) to cover the liquidity deficit and the financial balancing of the company in 2024. Through these operations, the context of the company’s profitability and its transition to profit will be created as early as 2024 Today’s decision represents an important step to save the TAROM company, a national and international brand with a tradition in the aviation field”, added the Minister of Transport.

The value of the individual state aid for restructuring approved by the European Commission Decision is 95.3 million euros, equivalent in lei of up to 474.193 million lei, according to the explanatory note of the draft decision by which the aid was approved.

The European Commission approved, on April 29, Romania’s plans to grant the state-owned national air carrier, TAROM, restructuring aid worth up to 95.3 million euros (473.69 million lei), based on the EU rules on aid state.

European Commissiongovernmentminister of Transportrestructuring aidsavesorin grindeanustate aidTarom
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