EC Statement: State aid - Commission approves Romanian state guarantee to Ford Romania
( November 13, 2009, 10:45 GMT | Official Statement) -- Extract: The European Commission has authorised, under the EC Treaty’s rules on state aid, a planned state guarantee by Romania to enable Ford Romania SA to access a loan from the European Investment Bank (EIB). The loan will co-finance the development project of a low-Co2 engine and subsequent vehicle production at Ford's Craiova plant. The 80% guarantee to be provided by Romania meets the conditions of the Commission’s Temporary Framework for state aid measures, which gives Member states additional scope to facilitate access to financing in the present economic and financial crisis.The European Commission has authorised, under the EC Treaty’s rules on state aid, a planned state guarantee by Romania to enable Ford Romania SA to access a loan from the European Investment Bank (EIB). The loan will co-finance the development project of a low-Co2 engine and subsequent vehicle production at Ford's Craiova plant. The 80% guarantee to be provided by Romania meets the conditions of the Commission’s Temporary Framework for state aid measures, which gives Member states additional scope to facilitate access to financing in the present economic and financial crisis. In particular, Ford Romania would pay an adequate remuneration for the guarantee and provide sufficient securities in case the guarantee would be drawn. It is therefore compatible with Article 87(3)(b) of the EC Treaty, which permits aid to remedy a serious disturbance in the economy of a Member state....
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