Saab Automobile gets permission for loans from EIB

22:01, October 21, 2009      

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Swedish carmaker Saab on Wednesday got a 'yes' decision for borrowing 400 million Euro from the European Investment Bank, according to a report from

The decision from the board of EIB is based on the Swedish state guarantee.

The Swedish government said a no for the guarantee earlier, but after Saab negotiated with Beijing Automotive Industry Holdings two months ago, upon the important decision making time for EIB, the Swedish government agreed with the guarantee.

The loans must be used for research and development in environment and safety issues.

The Swedish Saab personal car company was sold to General Motors in 1999. With long term running at a loss, General Motors decided to sell Saab this year and in August GM talked about the sale to Koenigsegg Group.

But the problem is that Koenigsegg must prepare for 4 billion kronor or 500 million dollars to take over.

It was reported that Beijing Automotive Industry Holdings, BAIC had written a letter of memorandum with Koenigsegg to become a small owner with capital last month.

It is believed that this negotiation helped gain the government's guarantee even though negotiations are still going on.

The loans from the EIB will facilitate Koenigsegg Group which consists of Swedish and Norwegian engineers to take over Saab.

Saab has been running at a loss all these years except one year since it was established in 1994.

Xuefei Chen, People's Daily Online, Stockholm.
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