IMF urges transparency over Air Serbia's coronavirus aid
The Serbian government is preparing a state aid package for its national carrier in order to minimise the effects the coronavirus pandemic has had on the airline. Last week, the state informed the International Monetary Fund’s (IMF) mission in Serbia of its plans to assist the company, noting it was currently the only state-owned enterprise which would receive aid. Commenting on the plans, which are yet to be fully revealed to the public, the IMF said, “The authorities agreed that close monitoring of revenue and expenditure risks will be critical going forward. At this stage only Air Serbia had been identified as in need of government support. The mission underscores that state support for troubled state-owned enterprises, including Air Serbia, should be offered in a transparent way. It suggests using the Fund’s technical assistance to help monitor possible losses on bank loans backed by state guarantees”.
The Serbian government had previously said it would provide wide-ranging support for its national carrier. The Minister for Finance, Siniša Mali, noted the government would assist Air Serbia with the repayment of two loans, valued 52.9 million US dollars and 63 million dollars, labeling the airline as being of national interest. The company will see the first of the two loans mature this month. Mr Mali said, “We are negotiating with the creditors. While I can’t reveal the contents of those talks, I can say that we will certainly help Air Serbia. We are working towards resolving this problem together with our partners at Etihad Airways”.
The Ministry for Construction, Transport and Infrastructure has drafted four strategies to financially assist the country’s national carrier. According to the ministry, the country will provide direct fiscal support as its main mode of assistance. The amount will depend on the final financial fallout from Covid-19. It said it was difficult to approximate an exact sum the state would invest in the national carrier but noted the assistance would be continuous and in line with the government’s priorities, needs and possibilities. Mr Mali said that a joint business plan has been drafted with the airline’s management, adding that the current situation in the global air transport sector might be used to acquire another aircraft for the company.
0 Response to "IMF urges transparency over Air Serbia's coronavirus aid"
Post a Comment