Flight Centre Travel Group (FCTG) has been approved to extend the short-term £65 million loan it received last year under the Bank of England’s COVID Corporate Financing Facility.
The funds were initially made available for 12 months to support short-term liquidity among firms as they worked to overcome disruption caused by coronavirus and the restrictions that were applied to slow its spread.
FCTG’s initial £65 million ($117 million) advance was for a term ending this month, but the Bank of England has now approved a 12-month extension through to March 2022, as well as an additional £50 million debt facility available for the same duration.
In its half-yearly results announcement last week, FCTG flagged a liquidity position in excess of $1.2 billion at 31 December 2020, including the initial £65 million loan.
FCTG managing director Graham “Skroo” Turner said: “While some positive signs are emerging, the travel, tourism and aviation industries still face significant challenges while widespread travel restrictions are in place.
“We thank the Bank of England for its ongoing and proactive support, which will help businesses save jobs and weather the near-term challenges.”
Featured image source: Westfield