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U.S. Ford To Pay Back Romania EUR27M State Aid By Jun 26

Romania’s privatization agency AVAS will notify U.S. giant Ford it has until June 26 to pay back Romania EUR27 million in illegal state aid granted with the sale of romania’s auto-assembly plant Automobile Craiova.
U.S. Ford To Pay Back Romania EUR27M State Aid By Jun 26
16 apr. 2008, 16:28, English

"AVAS decided Tuesday that the deadline for Ford to pay back the EUR27 million considered illegal state aid by European authorities is June 26," Laszlo Gyerko, AVAS vice-president and member in the Automobile Craiova privatization committee, told MEDIAFAX Wednesday.

He added the written notice would be sent to Ford this week. The notice will be sent to Ford Motor Company, Ford Europe, Daewoo Automobile Romania and Automobile Craiova, AVAS said in a statement.

AVAS also said it would notify the European Commission of the deadlines stipulated in the aid recovery decision.

Ford bought a 72.4% stake in Automobile Craiova for EUR57 million.

In fall last year, when the privatization contract was signed, the European Commission launched a probe into the deal to see if any illegal state aid had been granted to Ford.

The Commission ordered the Romanian government to recover an illegal EUR27 million state aid from Automobile Craiova. The Commission accused Romania of underselling Craiova to Ford, but allowed the sale to go through provided the state aid is paid back.