COVID-19 Pandemic: ESA greenlights Icelandic travel guarantee fund*
The EFTA Surveillance Authority (ESA) has approved an Icelandic scheme that provides subsidised loans for package travel traders.
The tourism and package travel sector in Iceland is experiencing financial difficulties due to an immediate and sudden decline in demand and widespread cancellations of package travel caused by the COVID-19 outbreak. The Icelandic government has proposed a scheme to help address shortages of liquidity for package travel companies.
“We continue to work closely with the Icelandic government to mitigate the pandemic’s economic impact on travel companies and their customers”, said ESA College Member Högni S. Kristjánsson.
Under the scheme, eligible companies will be able to receive state-subsidised loans to cover reimbursements for consumers whose package travel contracts were affected by the pandemic. The scheme has a budget of ISK 4.5 billion.
The scheme was notified to ESA on 1 July 2020. You can read ESA’s decision here.