Coalition parties split over further state funding for airBaltic

Latvia’s ruling coalition has no consensus on granting the government authority to invest additional funds in national airline airBaltic, LSM reported. The Union of Greens and Farmers would oppose the proposal at Thursday’s extraordinary Saeima session unless the bill is amended.

Harijs Rokpelnis, chairman of the Union of Greens and Farmers parliamentary faction, said this after the faction met with Prime Minister Andris Kulbergs of the United List.

The Saeima Budget and Finance Committee gave the bill preliminary approval on Wednesday. Four lawmakers voted against it, including Rokpelnis and his party colleague Ģirts Štekerhofs.

“We do not believe that the government should now be given an additional mandate to invest more taxpayers’ money in airBaltic. It is not entirely clear why the Finance Ministry, or whoever was responsible, allowed this to happen,” Rokpelnis said.

He said three separate decisions concerning airBaltic’s future had been combined into a single voting package. The Union of Greens and Farmers will submit amendments to the bill before deciding how to vote, he added.

Kulbergs stressed that lawmakers were being asked to grant a mandate for action, rather than approve new financing for the airline. He called it the final opportunity to allow airBaltic to implement its strategic restructuring plan.

“There are three decisions that must be made in the Saeima tomorrow. By making these decisions, we are at the table as the lender that provided the fuel, but we are also both the lender and the fund holder. We have the right to participate in implementing the company’s future strategic plan,” Kulbergs said.

Asked whether the bill would receive enough votes, the prime minister said he did not know.

The Budget and Finance Committee has declared the bill urgent. The Saeima is expected to consider it in both readings on Thursday, with an extraordinary committee meeting planned during the break.

The government is prepared to purchase a further 30 million euros in airBaltic bonds and has decided to extend repayment of the state loan until the end of this year.