Peugeot says state-backed rescue EU: compliant

PARIS Wed Oct 24, 2012 5:43am EDT

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PARIS (Reuters) - The French government-backed rescue plan for PSA Peugeot Citroen's struggling lending arm will comply with European Union rules, Chief Financial Officer Jean-Baptiste de Chatillon said on Wednesday.

Peugeot announced a government-brokered deal to secure 11.5 billion euros ($14.9 billion) in bank financing and a state guarantee on up to 7 billion euros of future borrowings. Peugeot said it would pay the government for the guarantee.

"It's not state aid, it's state support," Chatillon said during a call with analysts and reporters. "It's priced at market values."

($1 = 0.7714 euros)

(Reporting by Laurence Frost; Editing by James Regan)