ANNOUNCEMENT 21 Feb 2014

In February 2014, the government of Serbia announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 21 Feb 2014 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

On 21 February 2014, the Commission responsible for overseeing state aid activities in the Republic of Serbia decided to approve the aid package to Air Serbia. According to the official documents, the government of the Republic of Serbia will contribute to the total costs related to the restructuring of its national carrier with 46% while the remaining 54% of the costs will be covered by Etihad, the strategic partner of Air Serbia since 2013.
While no official confirmation on the volume of aid is available in the public domain, a press release of Etihad states that the Serbian governmend matched an initial injection of USD 40 million. Furthermore, Etihad claims that the Serbian government promised to provide up to USD 60 million in loans and alternative funding mechanisms, if future working capital needs of Air Serbia so require.

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