Factsheet for case NO-2020-14/728 – Updated – measures in Norway
|Country||Norway , applies nationwide|
|Time period||Temporary, 31 March 2020 – 30 June 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Aasmund Arup Seip, FAFO and Eurofound|
|Case created||19 April 2020 (updated 06 October 2020)|
The parties in parliament have agreed to a state loan guarantee for airlines with Norwegian operation permits and promised to contribute to maintaining Norwegian aviation throughout an economically demanding period. The government regards the crisis in aviation as significant, and observe that many countries are establishing major schemes to ensure liquidity for the airlines. The Norwegian government’s loan guarantee totaling NOK 6 billion. Of these, 3 billion are directed to Norwegian, 1.5 billion to SAS and the remaining 1.5 billion to Widerøe and other airlines.
It established a state loan guarantee for airlines with Norwegian operation permits totaling NOK 6 billion. The guarantee scheme will be organized through the Guarantee Institute for Export Credit (GIEK). The state contributes 90 percent of the guarantee provided that external banks, credit institutions or other commercial counterparties provide the remaining 10 percent. To take part in the scheme it is required that the company is solvent. For companies that did not have an equity ratio of at least 8% at the end of the last quarterly report prior to the corona crisis, financial creditors must waive interest and defer repayment for three months to gain access to the guarantees. SAS and Widerøe satisfy the equity requirement. For Norwegian, an immediate facility of NOK 300 million will be made available. When and if the company achieves a reduction in interest and repayments from creditors, an additional NOK 1.2 billion will be made available. The last NOK 1.5 billion will be made available when the company has improved its solvency to a satisfactory level. If the state is to provide guarantees to Norwegian, both owners and lenders must contribute to a better financial situation for the company. The EFTA Surveillance Authority ESA has approved the guarantee scheme.
No information to date.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners have been consulted regularly during design and implementation of the measure.
The social partners are supportive of the measure. In March 2020, Federation of Norwegian Aviation industries (NHO Luftfart) and the two LO unions the Cockpit Association of Norway (NF) and the Norwegian Cabin Assosiation jointly sent a letter to the government and the Storting with specific proposals to measures in a crisis package for aviation.
|Economic area||Sector (NACE level 2)|
|H - Transportation And Storage||H51 Air transport|
This case is not occupation-specific.
Eurofound (2020), State loan guarantee for airlines , case NO-2020-14/728 (measures in Norway), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.