Business News
Swedish government prepared to guarantee Saab loan
Oct 6, 2009, 7:32 GMT
Stockholm - The Swedish government is prepared to guarantee a 600-million-dollar loan that Saab Automobile is hoping to get from from the European Investment Bank, reports said Tuesday.
The Swedish government on Monday informed the European Commission about its plans. The executive European Commission now has to investigate that the loan guarantee does not violate rules on state subsidies, the Goteborgs-Posten newspaper reported.
If the commission does not have any objections, the EIB board can review Saab's loan application, the report said.
Saab's current owner, US group General Motors (GM), earlier this year said it planned to shed the Swedish subsidiary.
A consortium structured around a low-volume Swedish sportscar maker, the Koenigsegg Group, is hoping to buy Saab. The consortium recently announced plans to include Beijing Automotive Industry Holdings (BAIC) as a minority owner.
GM's interest in Saab - one of Europe's smallest carmakers - dates back to the early 1990s. The company took full control in 2000.
COMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
