EU says to decide on German govt's Quelle loan soon

BRUSSELS, June 30 (Reuters) - The European Commission will decide "as quickly as possible" on the German government's plan to back a 50-million euro loan guarantee for the Quelle mail order unit of Arcandor, a spokesman said on Tuesday.

A spokesman for EU Competition Commissioner Neelie Kroes said: "We are aware of the urgency of the situation and will make a decision as quickly as possible."

The federal government agreed late on Monday to provide a loan guarantee of 50 million euros ($70 million) for Quelle together with two state governments until the end of this year.

Quelle urgently needed the funds to get its mail order catalogue out to its customers, which was held up after its factoring bank cut Quelle off following Arcandor's insolvency.

A spokesman for Arcandor's insolvency administrator said on Monday he expected a decision by the European Commission on Quelle's state aid request as soon as Tuesday. (Reporting by Ilona Wissenbach; writing by Erik Kirschbaum)