Romanian Pres: EIB To OK EUR400M Loan For Ford End-April

Both companies are negotiating with the EIB on loans to expand their facilities in Romania.

Basescu said early Thursday, before leaving Bucharest, that he would talk in Luxembourg with EIB representatives about the loans for Ford and Renault, adding that Romania would guarantee 80% of the value of both loans.

US carmaker Ford will invest EUR1.2 billion in its Romanian factory in southern city of Craiova and asked EIB for a EUR600 million loan.

Out of the total amount, EUR400 million will go directly to its Craiova plant, and the rest indirectly, to Ford Europe’s research and development center in Germany, exclusively for auto projects in Romania, Ford representatives said mid-February.

French Renault plans to expand its operations on the Romanian market, where it owns automaker Automobile Dacia and invested in a car testing facility.