News for 'GELYY' - (DJ Swedish Govt Decision On Guarantees To Volvo Cars Wednesday)
STOCKHOLM (Dow Jones)--The Swedish government said it will present its decision regarding state guarantees for the European Investment Bank's EUR600 million loan to car maker Volvo PV at 1000 GMT, Wednesday.
Last week the European Union Commission officially approved the terms of the Swedish government's state guarantees to Volvo Cars, the Sweden-based car maker that is owned by China's Geely Automobile Holding Ltd. (0175.HK).
The EIB loans to Volvo are conditional on the Swedish state guaranteeing the entire loan sum in return for collateral provided by Volvo.
The previous negotiations for Volvo Cars' EIB loans were put on hold this spring when Volvo Cars was sold to Chinese automaker Geely. The Swedish government wanted a clearer picture of Volvo Cars' ownership structure before it continued negotiations.
Speaking to Dow Jones Newswires on Nov. 11, Volvo corporate spokesman Per-Ake Froberg said Volvo Cars plans to use the loans for a number of environmental projects that are either ongoing or about to be launched.
-By Jens Hansegard and Sven Grundberg, Dow Jones Newswires; +46-8-5451-3098; sven.grundberg@dowjones.com
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