Federal Gov’t: Airlines Can Access New Bridge Financing
Anna Kroupina, Open Jaw
The federal government has announced it will create a bridge financing facility for large employers including the airline sector that need help to get through the economic downturn caused by the coronavirus pandemic -- but there are conditions attached.
Companies that use the lending facility will have to commit to collective bargaining agreements, protecting workers’ pensions, and support “national climate goals.” Rules on access to the money will also place limits on dividends, share buy-backs and executive pay.
“But let me be clear, these are bridge loans, not bailouts,” Prime Minister Justin Trudeau said when speaking to reporters today, according to National Post.
The bridge lending facility is intended for companies with an annual revenue of about $300 million seeking financing of $60 million or more that have “significant operations or workforce in Canada.”
The goal is to protect jobs and help businesses weather the economic downturn caused by COVID-19 and avoid going bankrupt, Finance Minister Bill Morneau said.
He added that the program is to help companies that have a "significant footprint" in Canada bridge to better days. It is not intended to be a low-cost loan program for companies that don't need it or to bail out companies that were already in financial trouble before the pandemic.
Morneau said the companies must disclose their climate action plans and sustainability goals to qualify and must meet other conditions, including not having "excessive" executive pay.
Anna Kroupina Journalist
Anna is OJ's newest member and she joins the team as a writer/reporter. She co-writes the daily news and covers events. Although she's new to the industry, pursuing a career path in travel/tourism has been a goal since her first family road trip to the Florida Keys sparked a desire to discover the world and this exhilarating, fast-paced industry.