Romanian Senate Approves Guarantee Agreement For EIB Loan To Ford Romania

The Guarantee Agreement between Romania and the EIB was signed in Bucharest on January 21, 2010.

Under the agreement, Romania will guarantee 80% (or EUR320 million) of the loan. The guarantee is granted for a period of five years and the risk commission was set at 2% a year.

Ford has the option to repay the loan after the five-year period, EIB vice-president Matthias Kollatz-Ahnen said. In the meantime, however, the carmaker will pay EIB the due interests for the loan, he added.

The senators unanimously approved the law ratifying the agreement.

Ford Romania will use the EIB money to finance a EUR1 billion project at Craiova, part of Ford's European efforts aimed at developing cars that emit low levels of carbon dioxide.

Ford became the main shareholder in the Craiova-based plant in 2007, after it bought a 72.4% stake from the Romanian state in exchange for EUR57 million. Ford later increased its stake to over 90%.

The US carmaker has launched its first Transit Connect model assembled in Craiova in September last year.

Ford said at the time the second model to be produced in Craiova will be a small car. The company also announced plans to build a small displacement, advanced EcoBoost petrol engine. However, no production dates were given.

Ford plans to manufacture between 20,000 and 30,000 vehicles at the plant in Craiova in 2010.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.