Nyköping Municipality acts as guarantor for a loan of 70 million SEK that will save Skavsta Airport from bankruptcy, SVT Sörmland reports.

In early March The CEO of Skavsta Airport, Cédric Fechter, stated that bankruptcy was "just weeks away" if the pandemic-ravaged business did not receive support from the co-owner Nyköping Municipality.

The municipality has now decided to act as guarantor for 50 percent of a loan of SEK 70 million, SVT Sörmland reports. The decision was made by the municipal board on Monday.

”"We see it as a low risk exposure," says Urban Granström (S), chairman of the municipal board, to SVT.

Security is provided in the form of land worth SEK 35 million and if the loan guarantee is fully utilized, Skavsta will pay a fee to the municipality of SEK 280,000 per year during the guarantee period.

Since 2018, Skavsta Airport has been owned by the airport operator Vinci Airport, headquartered in Paris. Nyköping Municipality still has a 9.9 percent ownership stake.

Source: di.se