PSA and Renault repaying a third of the 6 billion euros loan

Article by Christian Andrei, on September 13, 2010

Renault and PSA/Peugeot-Citroen are prepared to repay about a third of the 6 billion euros ($7.6 billion) in loans received from the French government loans to assist them in getting by during the financial crisis. In April last year, France gave loans of 3 billion euros each to PSA and Renault so that they will be able to survive.

These two companies are vital since they support hundreds of thousands of jobs in France. The loans were due to be paid back from next year.

These two companies have stated that they will repay 1 billion euros this Friday. PSA said that the reimbursement will come from current liquidity resources, enabling the group to cut gross debt and to get considerable interest expense savings. In a separate statement,

Renault said that the repayment will help it reduce gross debt and lower interest expenses. Last June, both companies said that they will repay a portion of the loans early as the carmakers have been able to recover due to the scrapping schemes.

Back then, Renault said that it hopes to repay at least 500 million euros this year. Meanwhile, PSA stated that it could repay 1 billion in the second half. [via autoenws - sub. required]

Topics: renault, psa, france

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries