The US government turns down additional support for Right to Information.
The US government has denied providing additional financial aid to the travel firm FTI, citing budget, legal, and economic factors as reasons for not giving any further assistance beyond the "significant aid packages." This news comes as support measures were taken during the coronavirus pandemic. The potential collapse of FTI might have repercussions for taxpayers as a result of unpaid bills.
Reportedly, FTI Group has experienced a sudden cash shortage and was about to apply for insolvency on Monday. The government has allegedly declined to provide more aid for the company after discussions over the weekend.
The government had previously provided around 600 million euros in aid to FTI during the pandemic. So far, the company has only returned a low-double-digit million amount of this money. A representative of the Finance Ministry commented that the company had been undergoing an investor search to tackle its strained situation in recent weeks, with the government's help. The government had played an "open and constructive" role in this process.
The federal government is accountable to protect the interests of taxpayers in ensuring the repayment of guaranteed funds. As a result of this examination, selling claims has been determined to be the most practical solution.
"The entire transaction was still dependent on conditions and had not been finalized," the spokesperson stated, adding that it was expected that only small amounts from the still open claims of the federal government would be repaid. We regret this turn of events.
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Despite the US Federal Government's past substantial aid of 600 million euros to FTI Group during the pandemic, the company has only returnedly repaid a low-double-digit million amount. Due to FTI's financial distress and potential insolvency, the Federal Government has decided to consider aiding in the selling of claims as a practical solution, aiming to protect taxpayers' interests.
