Malaysia’s government is backing a 1 billion ringgit ($242 million) loan as a lifeline for the airline AirAsia Group as it struggles to contain the consequences of the coronavirus pandemic, Nikkei Asia reported.
See also: Malaysia Airlines survival in doubt, says CEO.
The loan will be made by a group of local banks under a government scheme to help companies deal with the pandemic. It will be 80% guaranteed by Malaysia’s finance ministry, according to sources at the ministry and the airline who are aware of the plan.
“The 1 billion ringgit is deemed very crucial for AirAsia, to be utilized for repayment of short-term loans and fund working capital,” one source close to the ministry said. Disbursement is expected next month.
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