BRUSSELS (Reuters) - The European Commission approved on Wednesday a 5 billion euro ($5.4 billion) loan guarantee to carmaker Renault group (RENA.PA) to mitigate the impact of the coronavirus crisis.
The Commission, which oversees competition policy in the European Union, has temporarily eased its rules to allow EU countries to support their economies that are set to go into recession as a result of lockdown measures.
The Commission had already approved a general French guarantee scheme allowing 70% loan coverage in March. The Renault plan was submitted separately as the French state provides loan coverage of 90%, the Commission said.
The guarantee is subject to certain restrictions, such as that it cannot support a loan exceeding 25% of Renault group’s 2019 turnover and that it last no more than six months.
Reporting by Philip Blenkinsop;Editing by Elaine Hardcastle