Saab loan guarantee approved
EU antitrust officials say Swedish government offer would not distort competition.
The European Commission today approved a loan guarantee offered by the Swedish government to the troubled Swedish carmaker Saab.
The aid will guarantee a €400 million loan that Saab is to receive from the European Investment Bank (EIB).
Neelie Kroes, the European commissioner for competition, said the Swedish government’s guarantee would “contribute to the implementation of Saab’s business plan without giving rise to any undue distortions of competition”.
Saab will use the EIB loan to part finance a €1 billion investment project into fuel efficiency and car safety.
The carmaker last month faced imminent liquidation by its owner, General Motors (GM), but was saved by Dutch super-car manufacturer Spyker, who agreed to a buy Saab from GM for $400m (€293m).
The Commission said that most of the guarantee (82.8%) was in line with temporary rules allowing member states to provide extra support to their economies during the financial crisis. It said the remaining portion of the guarantee would be offered by the Swedish state at market rates, and so did not present any competition concerns.
The Commission said that its approval of the state aid was conditional on Saab paying a premium and giving the Swedish government “high-quality collateral”. It said it had received firm assurances from Saab on both points.