PARIS (Reuters) – Renault (RENA.PA) finalised on Wednesday a 5 billion euro ($5.60 billion) loan from with the French government, strengthening the carmaker’s finances in the wake of the coronavirus pandemic which has ravaged the auto industry.
Renault said that the credit facility carried a guarantee from the French state – which owns a 15% stake in Renault – of up to 90% of the total amount borrowed.
Renault also said in a statement that the loan would help finance the company’s liquidity requirements.
The announcement sparked weekend protests at some factories, including at Maubeuge in northern France, although Renault’s chairman Jean-Dominique Senard has pledged the site will not be closed.
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Reporting by Sudip Kar-Gupta and Matthieu Protard; Editing by Keith Weir and Louise Heavens