Tarom cleared to take 'stringently-monitored' rescue loan

Rescue aid for Tarom, amounting to nearly E37m, has been cleared by EC regulators. The Romanian govt had previously indicated that it was aiming to support the ailing operator with a funding package, and notified regulators earlier this month. Tarom faces an “acute liquidity shortage” arising from operating costs associated with its ageing fleet, says the Commission. “Absent the aid, Tarom will no longer be able to fulfil its payment obligations while keeping operations running,” it adds. Tarom’s funding will take the form of a temporary loan. “The measure will contribute to ensuring the orderly continuation of air transport services, in particular on numerous routes where Tarom is the only provider,” the Commission states. It says the loan will only cover the airline’s demonstrated liquidity needs for the next 6 months. <br/>