Estonia is to give Baltic Sea shipping firm Tallink a three-year €100m loan. The government said its loan was at 2% over 12-month EURIBOR, and would be secured by the firm’s assets.
Tallink operates large ferries between Estonia and Finland, and from Latvia, Estonia and Finland to Sweden, but has been hit badly by the Covid-19 crisis. Passenger traffic dropped by 96% in April, while cargo traffic fell by 14%.
June to August is normally its peak season.
Last week Tallink reported a Q1 gross loss of €20,000, down from a profit of €10.5m in Q1 2019. It warned that the outlook was highly uncertain.
The company delayed until Q3 paying a €49.4m instalment for a new ship and raised an additional €20m overdraft facility from Danske Bank.