KLM expects talks on grants to take weeks: Telegraaf

AMSTERDAM (Reuters) – KLM, the Dutch subsidiary of the airline group Air France-KLM The Dutch newspaper De Telegraaf reported on Thursday that it will take weeks for talks with banks to complete financial aid.

“We are talking to banks, but it is quite complicated,” said KLM boss Pieter Elbers in a webcast earlier this week to his employees, De Telegraaf said.

“On the one hand we talk to banks about the conditions for loans, on the other hand we speak to the government, which has other ideas about the conditions for these loans.”

The Dutch government announced last week that it would provide KLM with 2 to 4 billion euros (up to $ 4.34 billion) in grants to help the COVID-19 pandemic take the form of government loans and government guarantees on bank loans to survive.

The options for KLM are limited, De Telegraaf said, as international banks preferred to work on support for Air France to maintain their relationship with the French government.

KLM is expected to use its existing relationships with the Dutch banks ING and Rabobank [RABOVR.UL]The Dutch government is dependent on the help of the state ABN Amro .

KLM was not available for comment.

(Reporting by Bart Meijer; editing by David Evans)

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