Friday, March 20, 2009

Romania, EIB to discuss Ford, Renault loans

eubusiness.com
19 March 2009

(BUCHAREST) - Romanian President Traian Basescu said he would meet the head of the European Investment Bank on Thursday to discuss loan requests from auto giants Ford and Renault and aid for the banking sector.

"One of the subjects will be EIB credit for Ford and Renault, which requires government guarantees covering 80 percent of the value of the loan," he said before heading to an EU summit in Brussels, the presidency said in a statement.

Basescu said he would meet EIB chief Philippe Maystadt in Luxembourg before the start of the two-day summit of EU leaders, which is aimed at forging a common front in efforts to resolve the global economic crisis.

Ford and Renault asked for aid from the Romanian government in December.

US auto giant Ford requested state guarantees on a 400-million-euro (546-million-dollar) loan to upgrade its plant in Craiova in southern Romania.

France's Renault asked for guarantees on a 100-million-euro loan to built a testing centre in Titu also in southern Romania.

Basescu said talks with the EIB chief would also touch on the "acceleration of financing for infrastructure projects" in Romania and "the Romanian banking sector for which we are seeking financing."

Romania is seeking a loan of up to 20 billion euros from the International Monetary Fund and the European Union as a safety belt to cope with

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