The TUI tourism group receives a loan from the state development bank KfW for 1.8 billion euros. “TUI AG today received a commitment from the German government for a KfW credit line of EUR 1.8 billion, which is to be added to TUI’s existing EUR 1.75 billion loan agreement.” The company announced. However, other banks would have to agree. One of the conditions was that TUI waived dividend payments during the term of the bridging loan.
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This would mean that TUI would currently have funds and credit lines in the amount of 3.1 billion euros. TUI decided to apply for the KfW loan “to cushion the unprecedented effects of the Covid 19 pandemic until normal business operations can be resumed”.
“The commitment of the KfW bridging loan represents an important first step for TUI to successfully bridge the current exceptional situation,” said CEO Fritz Joussen. He thanked the Federal Government, the Bundestag, the Lower Saxony State Government and the KfW. “You acted quickly and solution-oriented in the interests of our customers, employees and the company.”
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TUI had applied for the KfW bridging loan in order to cushion the effects of the Covid 19 pandemic until normal business operations could be resumed. In mid-March, the company had to suspend its vacation offers, including package tours and cruises, and hotels until further notice due to travel restrictions and travel warnings in almost all countries. “We are temporarily a company with no product and no income,” said Joussen. “We need to bridge this situation.”
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