Portugal says TAP can still use rescue loan despite court ruling

LISBON, May 25 (Reuters) - Portugal’s Economy Minister said on Tuesday last week’s ruling by Europe’s second-highest court against a 1.2-billion-euro rescue loan to TAP airline did not hinder negotiations on its restructuring plan and TAP could continue using that money.

The Luxembourg-based General Court on Wednesday upheld Ryanair’s fight against the rescue loan TAP received in 2020 from the state, with the European Commission’s blessing, on the grounds that European regulators failed to justify the huge cash injections.

“This decision that the court took for formal reasons, over a lack of adequate reasoning, does not have an immediate impact, nor does it suspend the possibility of TAP continuing to benefit from the loan,” Pedro Siza Vieira told Reuters.

Reporting by Sergio Goncalves; editing by Andrei Khalip and Jason Neely