French carmaker Renault formalized on Wednesday a credit facility agreement with a group of French banks to secure a loan of up to 5 billion euros ($5.6 billion), with the French government guaranteeing up to 90 percent of the credit, to make up for the pandemic-enduced losses
MOSCOW (Pakistan Point News / Sputnik - 03rd June, 2020) French carmaker Renault formalized on Wednesday a credit facility agreement with a group of French banks to secure a loan of up to 5 billion Euros ($5.6 billion), with the French government guaranteeing up to 90 percent of the credit, to make up for the pandemic-enduced losses.
"Groupe Renault announces the finalization of a credit facility agreement with a banking pool, for a maximum total amount of ��5 billion benefiting from a guarantee of the French State," the statement said.
The banking pool consists of BNP Paribas, Credit Agricole, HSBC France, Natixis and SocGen.
"This credit facility, which may be drawn in whole or in part, will help finance the group's liquidity requirements within the context of an unprecedented crisis," the statement added.
The conditions include "a guarantee from the French State up to 90% of the total amount borrowed."
Renault, whose 15-percent share is owned by the French government, was experiencing financial hardships even before the COVID-19 outbreak, having suffered its first net loss in 10 years in 2019. When a two-month lockdown was introduced in France in mid-March, the automaker was forced to close all its factories. According to French Economy Minister Bruno Le Maire, the manufacturer literally has to "fight for its existence" in the wake of the pandemic.
The plant in northern France's Maubeuge has resumed operations following the launch of a massive strike last Friday by employees angered by the company's announcements to cut 15,000 jobs worldwide, including 4,600 in France, as a part of a 2-billion-savings plan up to 2023.
