On Thursday, 16 April, the Saeima approved the granting of a state short-term loan of EUR 30 million to AS Air Baltic Corporation in order to mitigate the negative impact of the conflict in the Middle East region on the company’s financial situation.

As emphasised by Anda Čakša, Chair of the Saeima Budget and Finance (Taxation) Committee, the decision is aimed at preserving the stability of the national aviation sector and ensuring the continuity of airBaltic’s operations, considering external geopolitical challenges and their impact on fuel prices. This creates the necessary preconditions for a favourable development scenario for the company and for maintaining its stability.

The decision was adopted on the basis of the informative report on the current situation of airBaltic reviewed by the Cabinet of Ministers at its meetings on 31 March and 13 April 2026.

The principal amount of the loan and the interest thereon must be repaid by 31 August 2026. The interest rate will be determined in accordance with the calculation methodology provided for in the informative report and in compliance with the regulatory framework governing the control of state aid to commercial activities. The loan will be granted without collateral.

The Ministry of Transport has been instructed to ensure that the opinion of the European Commission is obtained regarding the compliance of the state short-term loan with the private investor principle.

Saeima Press Service