Morocco Unveils $600 Million Rescue Package for Royal Air Maroc Amid Pandemic Crisis

The financial aid of 6 billion dirhams that RAM will benefit from represents around 37% of the financial support needs expressed by all public establishments and companies, i.e. a total of 16 billion dirhams, of which 10 billion immediately (guarantee, subsidies, capital, etc.), reports Les Inspirations Eco.

This aid, which will be staggered, will be granted to the airline in the form of a loan guaranteed by the State. "The mix between equity and debt is not a fixed dogma over time, it is an adaptation. We will have the flexibility needed to ensure the right balance of the company," promises Nadia Fettah Alaoui, Minister of Tourism, Crafts, Air Transport and Social Economy.

"RAM should contract market-based interest-bearing loans of 2.6 billion dirhams. So the state will only be a guarantor in case RAM defaults on the loan repayment installments," explains a government source, adding that the airline will have to bear the said loans and their interest and charges.

The state had demanded a restructuring plan from RAM before granting this financial aid.