PSA Peugeot Citroen Wins EU Approval For 7 Billion Euro Loan From French Government

Europe's second biggest automaker, PSA Peugeot Citroen, has gotten approval from the European Union for the French government to guarantee $9.28 billion (7 billion Euros) in bonds to provide Banque PSA Finance, the car maker's finance arm, with funds so they can sell cars on credit at competitive interest rates. "We have arrived at a formula which allows PSA to restructure in accordance with clear limits, reducing to a minimum the damaging effects for competitors who have not received support from public funding," said Joaquin Almunia, EU Competition Commissioner, in a written statement. "This is a balanced result which offers the PSA group the chance to make a new start on a sound basis." The bonds helps Peugeot keep down borrowing costs, a vital ingredient in offering loans competitive with the financing deals offered by companies like Volkswagen, Europe's biggest automaker. from The Truth About Cars http://www.thetruthaboutcars.com

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