Estonia's Tallink receives EUR 90 million guarantee for additional loan from Finnish government

  • 2020-11-19
  • LETA/BNS/TBT Staff

TALLINN - The government of Finland on Thursday approved a state guarantee of up to 90 million euros for a 100-million-euro loan to Tallink Silja Oy, a subsidiary of the listed Estonian shipper Tallink Grupp.

"We are very grateful to the Finnish government for the state guarantee that will be given to the loan of 100 million euros for our subsidiary Tallink Silja Oy. Tallink Grupp has been working on securing its long-term liquidity since the beginning of the crisis, in order to secure the company's sustainability in these challenging times that have arisen due to the pandemic," Paavo Nogene, CEO of Tallink Grupp said.

"We have also, from the beginning, emphasized that we do not expect the Estonian government alone to solve all Tallink's problems. We have received a lot of understanding and support during this crisis from our existing loan partners, the Estonian state and have now also further secured our future with today's decision with the Finnish state guarantee,“ he added.

The Finnish government has the right to guarantee 600 million euros' worth of loans until the end of 2020 for the purpose of ensuring continued functioning of vital supply lines.

The Finnish government's guarantee to Tallink is compatible with the European Commission's regulation permitting state guarantees to shipping companies to cover 90 percent of risk on loans, according to public broadcaster ERR.