Debt Office provides guarantee for Braathens Regional Airways

The Swedish National Debt Office has issued a credit guarantee for a loan of SEK 200 million to the airline Braathens Regional Airways AB. The guarantee is being granted under the state guarantee programme for airlines that was introduced to mitigate the economic impact of the coronavirus pandemic.

The loan will run for five years, and the guarantee covers 90 per cent of the principal of the loan.

Background

To mitigate the economic impact of the coronavirus pandemic, the Debt Office, as mandated by the Government, is providing credit guarantees for airlines. The credit guarantees may amount to a maximum of SEK 5 billion in total, of which a maximum of SEK 1.5 billion may be for SAS AB. The guarantee for Braathens Regional Airways is the second guarantee that has been provided under the guarantee programme for airlines. The first guarantee issued was to benefit SAS AB. Subsequently, SAS AB has repaid that loan, and the Debt Office’s committment in that case has been concluded.

No new guarantees can be granted under the guarantee programme for airlines after 31 December 2020.