Factsheet for measure
NO-2020-14/728
–
Updated
– measures in Norway
State loan guarantee for airlines
Statlig lånegaranti for norsk luftfart
Background information
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.
Content of measure
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.
Updates
The following updates to this measure have been made after it came into effect.
|
24 November 2020
|
In November 2020, the Government found it necessary to further assist the aviation industry and proposed to extend the term and withdrawal period of loans under the aviation guarantee scheme. The credit period was extended by 6 months, from 31 December 2020 to 30 June 2021, and that the term of the guarantees was changed from two to three years.
|
|
20 September 2020
|
The 20 September, the government proposed to prolong the loan guarantee scheme for airlines until 31 December 2020. The change must be approved by EFTA Surveillance Authority (ESA) before it can enter into force.
|
|
29 May 2020
|
The 29 May, the government proposed three changes to the guarantee scheme:
-
Extension of the scheme from 30 June to 31 October 2020.
-
Possibility to deviate from the requirement for risk sharing on equal terms (the pari passu condition) and replace the condition by other terms.
-
In addition, the government will open a dialogue with ESA on an adjustment that imply that shareholder contributions in the form of equity injection can be accepted as a "commercial tranche" corresponding to 10 percent of the state guarantee, so that GIEK in the scheme can guarantee 100 percent of loans. Such a change will be positive in terms of the state's risk, and may make it easier for companies to access the scheme.
|
Use of measure
No information to date.
Target groups
Actors and funding
|
Actors
|
Funding
|
National government
|
National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Consulted
|
Consulted
|
|
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 jointly
-
Main level of involvement: Sectoral or branch level
Involvement
Social partners have been consulted regularly during design and implementation of the measure.
Views and reactions
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.
Sectors and occupations
-
This case is sector-specific (only private sector)
-
|
Economic area
|
Sector (NACE level 2)
|
|
H - Transportation And Storage
|
H51 Air transport
|
This case is not occupation-specific.
Sources
