BRUSSELS, June 10 (Reuters) - The European Commission said on Wednesday it had approved Portugal’s plan to grant a 1.2 billion euro ($1.36 billion) rescue loan to national airline Transportes Aereos Portugueses (TAP) to help address its liquidity needs during the COVID-19 pandemic.
Rescue aid can be granted for a maximum of six months. In this case, the Portuguese authorities have committed that TAP will reimburse the loan or submit a restructuring plan in that time.
“This 1.2 billion euros Portuguese rescue aid will help TAP Air Portugal face its liquidity needs and pave the way for its restructuring to ensure its long-term viability,” Commission executive vice president Margrethe Vestager said in a statement. ($1 = 0.8803 euros) (Reporting by Philip Blenkinsop)