Finland is to provide a €100-million loan to the Finnish subsidiary of Estonian shipping line Tallink.
Tallink announced Thursday that the Finnish government approved the loan, with a guarantee of up to €90 million, to Tallink Silja Oy, Tallink's Finnish arm.
The sum matches one provided by the Estonian state, via its credit agency KredEx, earlier on in the year, in response to the COVID-19 pandemic and its aftershocks.
"We are very grateful to the Finnish Government for the state guarantee that will be given to the loan of EUR 100 million for our subsidiary Tallink Silja Oy," Paavo Nõgenge, CEO of the operator's parent company Tallink Grupp said.
"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.," Nõgene went on.
"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."
AS Tallink Grupp says it will issue a separate and more detailed stock exchange announcement once the deal is signed.
Tallink Grupp operates hotels, many of which have been largely free of guests since the pandemic began in spring, as well as several ferries plying their trade between the capitals of the two countries, as well as other routes connecting to Stockholm, Visby (Gotland, Sweden), Ahvenamaa/Aland (Finland) and Riga.
Editor: Andrew Whyte