Latvia’s Saeima has fast-tracked a law to support airBaltic’s financial stabilisation, authorising the government to buy up to €30 million in new bonds and convert up to €50 million of existing bond claims into capital. Passed in an extraordinary session on Wednesday, the measure also gives the state scope to extend repayment of a government loan and arrange interim financing if needed.
The move was completed through two readings and committee scrutiny in a single day, underlining urgency around the airline’s funding position. The state already holds about 88% of airBaltic and owns €50 million of its bonds, leaving it deeply exposed to the carrier’s balance-sheet pressures.
The legislation is designed to support a broader financing plan already set out by airBaltic and gives the government more flexibility as both controlling shareholder and creditor. Rather than backing expansion or fleet growth, the package is structured as short-term liquidity support aimed at steadying the airline while its capital structure is adjusted.