France’s Finance Minister Bruno Le Maire said he has not signed off on a 5 billion euro ($5.47 billion) state-guaranteed loan to help Renault (RENA.PA) cope with the fallout from the coronavirus, and that discussions continued.
Le Maire told newspaper Le Figaro that the government was seeking commitments from carmakers in three areas in return for help: electric vehicles; the fair treatment of sub-contractors; and that they base hi-tech activities in France.
“Renault is fighting for its survival,” Le Maire said in the interview published late on Thursday. “I haven’t yet signed the loan.”
Sources told Reuters on Monday that Renault had reached an agreement on the loan with banks and that it should be submitted to the board of directors soon, before being formally approved by the finance ministry.
Le Maire said France’s response to the worst depression since World War Two totalled 450 billion euros in aid and state guarantees - 20% of France’s annual national output.
The government forecasts the euro zone’s second-biggest economy will shrink at least 8% this year. Its budget deficit is set to hit a post-war record of 9% of economic output this year.
The European Union has granted member countries all the fiscal leeway they need to deal with the economic impact of the coronavirus, enabling governments to open the spending taps and wave aside EU budget rules that limit government borrowing.
There is no time limit set in the flexibility clause allowing this. Nonetheless, Le Maire said he hoped the rules would remain suspended in 2021.
Latest Stories
-
Bahamas World Relays: Ghana paired with world and Olympic champions in Heat 1
2 hours -
Bahamas 2024 Relays: Star-studded cast ready to put on pre-Paris show
3 hours -
Bahamas Relays preview: clash of global title-winning teams in men’s 4x100m
3 hours -
Arsenal keeper Raya wins Premier League Golden Glove
3 hours -
Iñaki Williams scores twice in Athletic Bilbao’s win over Getafe
3 hours -
Argument with Salah ‘completely resolved’ – Klopp
3 hours -
Reus to leave Dortmund at the end of the season
4 hours -
Uefa confirms 26-man squads for Euro 2024
4 hours -
Teacher Unions press home demands for the new allowances
4 hours -
Media’s failure to hold government accountable for ‘galamsey’ alarming – Mahama
4 hours -
Keta Presbytery urges Akufo-Addo to assent to anti-LGBTQ+ Bill
4 hours -
Ghanaian midfielder Lawrence Ofori nets maiden goal of the season with stunner against Vizela
4 hours -
Community fearful after off-duty policemen shot dead at East Trasacco
4 hours -
Dext Technology partners KNUST to train basic school teachers on STEM
5 hours -
My efforts led to remarkable transformation in Appiatse – Lands Minister
5 hours