EU approves Saab EIB loan

In a week from today, Spyker are due to close the deal for the purchase of Saab Automobile from General Motors. Today sees another hurdle overcome, another step closer.
DI.se are reporting that the European Union has reviewed and approved Saab’s loan application with the EIB. The purpose of the EU review is to confirm that the guarantees provided by the Swedish government do not contravene EU rules on state aid. Basically, it means that the loan is bona fide and can go ahead, providing the EIB itself approves the application.
Note: this is not the EIB approval itself. It’s just the EU giving it the go-ahead from their perspective. The actual EIB approval will need to come this week, along with final confirmation of the loan guarantees from the Swedish National Debt Office.
And a quick thought……. If this decision had come around November 20, Saab would be owned by Koenigsegg by now.
A googletrans:
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EU approves state guarantee for loans Saab
Updated 2010-02-08 12:05
EU Commission on Monday approved the Swedish government plans to put out a guarantee that Saab Automobile to take a loan from the European Investment Bank for 400 million euros.
“The State guarantee will help Saab to implement its business plan without incurring any undue distortion of competition”, said Competition Commissioner Neelie Kroes said in a statement.
A smaller proportion, 17.2 percent, are not considered state aid since it is provided under market conditions.
Most of the guarantee, 82.8 per cent, satisfying the requirements of the EU’s temporary framework for state aid measures, EU countries to facilitate the financing during the current crisis.
The consideration for the guarantee that Saab will pay is sufficient. So is the security that it provides for the eventuality that the guarantee.
The EIB loan will co-finance the Saab’s business plan at General Motors sales to Dutch Spyker. The loan will be used for an investment of 1 billion euros, including for fuel efficiency and automotive safety.
It is planned to Saab to pay a fee for the guarantee and provide a guarantee of high quality to the Swedish government, which covers the entire amount guaranteed.
Swedish State can redeem the security on the forced payment of guarantee money.
The level of fees paid during the term of the loan complies with the Commission’s provisional framework.
For part of the guarantee, the lower portion of 17.2 percent, the Commission found that the annual fee of 12.48 per cent with the market given the current risks of the transaction and other conditions.
The Commission’s conclusion was therefore that this part of the guarantee did not involve any state aid.

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