French Auto Firms Repay Crisis Loans Early

Renault, Peugeot and Citroen will have repaid $8.8 billion by end of April.

The top three French auto groups, Renault, Peugeot and Citroen, will have repaid a total of six billion euros of state aid within two years by the end of April, a minister said on April 22..

Renault, and PSA-Peugeot-Citroen, each borrowed 3.0 billion euros (US$4.4 billion) for five years to help them through the economic crisis when demand for cars slumped and companies had difficulty in raising finance.

Industry Minister Eric Besson said on France Info radio that Renault and PSA had each already repaid 2.0 billion euros and that in the next few days each would repay another one billion euros, ahead of time.

Consequently the two groups "will have repaid the state all of the six billions they received two years ago, and ahead of time," he said.

Copyright Agence France-Presse, 2011

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