Romania’s government has approved a rescue aid of nearly 40 million euro to Tarom to keep the struggling national flag carrier afloat.
The government said that without the 185 million lei (38.8 million euro) injection the company wouldn’t be able to function beyond the end of March.
Ionel Danca, head of the prime minister’s chancellery, said the bailout loan, approved in a government meeting Thursday, would be transformed into restructuring aid, subject to approval by the European Commission.
He said after the aid is approved, the company needs to come up with a restructuring plan.
Tarom has been struggling with financial and operational problems for many years. It has made losses for 11 consecutive years.
According to finance ministry. Tarom had losses of about 183 million in 2018, more than the previous year when it registered 175.5 million losses.
At the same time, in 2018, its business grew by 1.2 billion lieu, 17 % more than the previous year, Profit.ro reported. ‘
The transport ministry owns a 97% stake in the company.