Frenchman Renault withdraws part of state-guaranteed loan

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FILE PHOTO: A logo of automaker Renault is pictured at a dealership in Paris, France June 18, 2020. REUTERS / Charles Platiau

PARIS (Reuters) – French automaker Renault withdrew part of a € 5 billion ($ 5.85 billion) loan guaranteed by the French government, set up earlier this year to shore up its finances during the coronavirus crisis, its president said.

Jean-Dominique Senard did not specify the amount of the loan borrowed by Renault, but added that the group had sufficient liquidity and that it had only taken advantage of the facility to make the most of the tools at its disposal. disposition.

“There will not be a single euro of public money used for Renault, I make it clear, unless the world collapses,” Senard said at an event Thursday in which the automaker has unveiled a new design for an electric vehicle.

Renault has joined several other large French companies including Air France-KLM to obtain loans backed by the State, as part of a crisis program set up in France to help companies deal with the pandemic.

Its credit facility is lent by commercial banks but carries a guarantee from the French government to the tune of 90% of the amount borrowed.

Financial director Clotilde Delbos added that the loan was due to expire at the end of the year, and that it would have been “a bit of a shame” not to make use of it.

“We have a very good level of liquidity, there is no problem with liquidity, it’s just good financial management,” said Delbos.

Reporting by Gilles Guillaume, Writing by Sarah White; Editing by Elaine Hardcastle

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