COLOGNE (dpa-AFX) - Deutsche Lufthansa AG (DLAKF, DLAKY) said that SWISS and Edelweiss, the two Swiss airlines of the Lufthansa Group, will receive guarantees from the Swiss Bund for 85% of the loans totaling 1.5 billion Swiss francs or about 1.4 billion euros. It is subject to the approval of the Swiss parliament.
The Swiss Federal Council decided on a comprehensive support package for Swiss aviation companies. As per the decision, the Federal Council will propose to the Swiss parliament to guarantee loans to Swiss airlines.
A consortium of Swiss banks will grant the loans at market conditions for a term of up to five years. The Swiss Bund guarantees 85% of the loans and they are secured by SWISS and Edelweiss shares held by Deutsche Lufthansa AG.
Lufthansa noted that the funds may only be used at SWISS and Edelweiss. No intra-group dividend payments must be made for the period during which the credit facility is drawn down.
Meanwhile, Deutsche Lufthansa said it is continuing to negotiate intensively with the governments in Germany, Austria and Belgium in order to secure the Group's solvency for the long term.
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