Norwegian has reported that two Nordic banks have obtained credit committee approval to provide a guarantee for the required 10% for the first tranche of NOK 300 million. Norwegian will secure the necessary headroom to pursue further guarantees from the Norwegian Government.
On March 19, the Norwegian Government proposed a guarantee of NOK 6 billion for the Norwegian airline industry, of which up to NOK 3 billion is directed to Norwegian. The guarantee will be up to 90% from the Norwegian Government provided that financial institutions contribute with the remaining 10%. The guarantee scheme will consist of three tranches with a maximum two years maturity.
Currently, most of the fleet is grounded and the Company has reduced its operations to a minimum. The Company will now primarily operate domestically in Norway and Sweden and between the Nordic capitals, in order to deliver on its corporate responsibility of maintaining critical infrastructure so that people and necessary goods and medical supplies can be transported during this unprecedented crisis. (US$1.00 = NOK11.07 at time of publication.)
