EURO $9 BILLION BAILOUT PLAN FOR LUFTHANSA UP
Talks over a €9 billion plan to save national German carrier Lufthansa could soon reach a conclusion, chancellor Angela Merkel said on Thursday, according to a dispatch from Euronews.
"The German government is in intensive talks with the company and the EU Commission. A decision is expected shortly, but I cannot give any details about ongoing talks", Merkel said.
Lufthansa confirmed that an intervention by the German government is on.
"The project provides for stabilisation measures up to €9 billion euros, including €3 billion in the form of a loan", which would come from public investment bank KfW, according to Lufthansa.
If the plan is finalised, the German government would take up a significant stake of the airline - the second in Europe for number of passengers carried.
The federal government's economic stability fund (WSF), which was created to cushion the impact of the coronavirus pandemic, would acquire 20% of the capital, as well as bonds convertible into shares worth "an additional 5% plus one share", Lufthansa detailed.