This summer, Tallink Grupp, which recorded a net profit in 2022 following several years in the red, is set to start repaying the €100 million loan it received from the Estonian state in 2020 to help it through the Covid-19 crisis.
In May 2020, the Estonian government decided to give to lend Tallink €100 million over three years to help the company navigate the crisis caused by the coronavirus. The loan agreement between Tallink and Kredex, now known as the Estonian Business and Innovation Agency (EAS), was signed in June the same year.
The original agreement required Tallink to repay the loan in a single instalment at the end of the three-year term, with interest set at the Euribor 12 month rate plus two percent. The loan was secured by the company taking out mortgages on five of its ships.
However, an amendment to the agreement was signed last summer, extending the loan's term by three years until June 2026.
"The loan agreement was extended because the crisis turned out to last significantly longer than originally expected," Kai-Ines Nelson, Tallink's chief communications officer, explained to ERR.
The amended version stipulated that repayments would begin this June, with a further one-off payment due once the loan's term was reached.
According to Nelson, Tallink has used the loan money to cover costs it incurred during the coronavirus crisis, to pay staff and ensure the company's sustainability.
Tallink Grupp recorded net losses of €108 million in 2020 and €57 million in 2021. Last year, the company was back in the black, boasting a net profit of €14 million and an increase both its passenger and freight traffic volumes.
Editor: Michael Cole