Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Volvo applies for massive European loan

Share this article

15:40 CET+01:00
Ford-owned Swedish car maker Volvo has applied for a 475 million euro loan from the European Investment Bank (EIB), the Swedish government said on Thursday.

"Volvo has requested a loan of around five billion kronor," the government said in a statement, adding that a final agreement including Swedish state guarantees for the loan was expected to be concluded by March.

Maria Bohlin, a spokeswoman for Volvo Cars, confirmed the size of the loan requested by the firm and said: "The negotiations will continue until a decision is taken" by EIB, the European Union's long-term lending institution.

Around three-quarters of a rescue plan for the Swedish car industry amounting to 28 billion kronor consists of Swedish government gurantees for loans from the EIB.

Ford announced on Thursday that Volvo Cars had a loss of $736 million in the fourth quarter.

Get notified about breaking news on The Local

Share this article

From our sponsors

The ‘fairytale' boarding school nestled in a Swedish village

The words ‘boarding' and ‘school' often summon images of strict teachers, drab dormitories and downcast children. That image couldn't be further from reality at Sigtunaskolan Humanistiska Läroverket (SSHL), where boarders describe the ‘fairytale' school as a home away from home.

Advertisement