By Tara Rippin • 31 March 2020 • 15:26
LIFELINE: German government agrees rescue loan cash to TUI
Germany’s ‘positive step’ is sure to have a beneficial impact on the region’s rebound after State of Alarm measures are dropped.
The funds from Angela Merckel’s government will be used to increase the tourism group’s ‘existing line of credit’ with its banks to the value of €1.75 billion.
One of the conditions for granting that loan is that TUI waives dividend payments. This would give TUI access to financial resources and credit lines totalling €3.1 billion.
Fritz Joussen, TUI’s Managing Director, says that “the loan commitment is an important first step for TUI to successfully overcome the exceptional situation.”
Joussen said “TUI is a very healthy company… economically successful before the crisis and we will be successful again.”
He said the company, which has 21 million customers, is currently facing unprecedented international travel restrictions, so “we are temporarily a company with no product and no revenue.”
TUI had a turnover of nearly €19 billion in 2019 and an operating profit of €893 million.
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Tara Rippin is a reporter for Spain’s largest English-speaking newspaper, Euro Weekly News, and is responsible for the Costa Blanca region.
She has been in journalism for more than 20 years, having worked for local newspapers in the Midlands, UK, before relocating to Spain in 1990.
Since arriving, the mother-of-one has made her home on the Costa Blanca, while spending 18 months at the EWN head office in Fuengirola on the Costa del Sol.
She loves being part of a community that has a wonderful expat and Spanish mix, and strives to bring the latest and most relevant news to EWN’s loyal and valued readers.
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