Unless something unforeseen happens, the airline will have to wait at least another 2 weeks for the money.
The attempt by Minister of Transport Aitis Švinkas ('Progressives') to secure a short-term loan of 30 million for airBaltic within a day has failed. This proposal was effectively blocked today by the Saeima's Budget and Finance Committee. Key to this was the role played by deputies from the Union of Greens and Farmers, who are part of the ruling coalition.
Such a demarche greatly surprised Minister Švinkas - at least, he pretended that the behavior of his partners was a complete surprise to him. However, rumors suggest that information about the possibility of deputies from the Union of Greens and Farmers torpedoing the loan decision had reached Švinkas and his colleagues from 'Progressives' the evening before.
There are three reasons for the demarche. The first is the extremely negative public reaction to yet another infusion of budget funds without any solid guarantees of repayment. In the lead-up to the elections, the 'Green Farmers', already losing voters, cannot silently support such an unpopular decision.
The second is the reluctance of the 'Progressives' to support important initiatives for the 'Green Farmers' in the coalition and in the Saeima, including today’s initiative regarding changes to tree cutting regulations.
The third is that the demarche will force Švinkas and the 'Progressives' to engage in dialogue with the 'Green Farmers' on issues important to them and to temper the hostile rhetoric. Otherwise, the budget committee will not approve the loan for airBaltic on April 14, as currently planned.
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