Renault reaches deal on 5 billion euro state-backed loan: Sources

Renault, which posted a loss in 2019 and had been struggling with faltering demand even before coronavirus, had already flagged it would seek state aid through this format.
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| Updated on: 20 May 2020, 11:26 AM
FILE PHOTO: The logo of Renault is seen at the Renault automobile factory in Flins as the French carmaker ramps up car production with new security and health measures during the outbreak of the coronavirus disease. (REUTERS)
FILE PHOTO: The logo of Renault is seen at the Renault automobile factory in Flins as the French carmaker ramps up car production with new security and health measures during the outbreak of the coronavirus disease. (REUTERS)

French carmaker Renault has sealed a deal with banks on a 5 billion-euro ($5.47 billion) state-guaranteed loan to help the company to cope with the coronavirus outbreak, two sources close to the matter told Reuters on Tuesday.

The state-guaranteed loan, which Renault had been working on for about a month, should be submitted shortly to the board of directors, the sources said, before being approved formally by the economy ministry.

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A Renault spokesman was not available immediately for a comment.

(Also read: Renault to lay off 400 employees at this unit)

The firm, which posted a loss in 2019 and had been struggling with faltering demand before the pandemic, has already flagged it would seek state aid through this format, in a bid to shore up its liquidity.

Other companies such as Air France KLM have also secured bailout deals through state-backed loans, which are funnelled through commercial banks.

First Published Date: 20 May 2020, 11:25 AM IST
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