The European Union Commission agrees to help Ford's operation attempt in Romania, securing an EIB (European Investment Bank) loan for the low-CO2 engines development and for car production at Craiova's Ford site. The development of autos' and engines' will be costing Ford about 1 billion Dollars.
Reuters said, Ford wants to secure a loan of 400 million Euro from the EIB at least for 5 years. To get the capital, Ford will be paying a premium for all those guarantees, giving great-quality collateral to Romania, covering the guaranteed quantity.
The Commission stated 'The Commission can authorize this state guarantee, which should contribute to Ford's trans-European investment project for environmentally friendly cars, without giving rise to undue distortions of competition'.
'The loans and the corresponding guarantees will be provided for five years, for the period 2009-2014 with a maturity of seven years. Ford Romania will pay a premium for the guarantees and provide the Romanian Government with high-quality collateral covering the guaranteed amount'.
'This collateral would be callable by the Romanian state if it had to pay out any money under the guarantee. The level of the premium paid during the lifetime of the loan is in line with the provisions of the Commission's Temporary Framework'.
Besides the capital from the European operation, EIB will be giving also 200 million Euro to the Werke GmbH Ford operation in the German territory.
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