Volvo applies for massive European loan
AFP/The Local · 29 Jan 2009, 15:40
Published: 29 Jan 2009 15:40 GMT+01:00
"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.