The Estonian government at its meeting on Thursday extended the maturity of the loan issued to the flag carrier Estonian Air.
Govt extends Estonian Air loan terms
13th June 2013, 18:00
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The draft decision approved by the government extends the maturity of the loan of up to 37 million euros provided from the government's property reform reserve, spokespeople for the government said.
"The maturity of the loan is extended until a decision is made on the application for permission to grant state aid, filed with the European Commission, but no longer than until June 20, 2018," Prime Minister Andrus Ansip said at the government press conference.
Of the credit capped at 37 million euros 24.9 million euros has been paid out by now and the process of restructuring of Estonian Air continues, Ansip said.
According to information published earlier the loan had to be repaid in six months.
"Given that it's an instalment of a rescue loan that we first provided in December, the maturity date is June 20. But there is a legal point -- after the company has submitted the restructuring plan the deadline of the loan will be extended until the plan has been approved," Minister of Economy and Communications Juhan Parts said in February.