Swedish debt office to OK Saab guarantees -report

STOCKHOLM, Nov 5 (Reuters) - Sweden's debt office is set to give Saab Automobile the green light for state guarantees for a 400 million euro ($594 million) loan from the European Investment Bank, a Swedish news agency reported on Thursday.

Last month, the EIB granted the loan, a key component in the planned sale of Saab by its parent General Motors [GM.UL] to tiny luxury sportscar maker Koenigsegg. But the Swedish state must step in with a guarantee if the funds are to be paid out.

Swedish news agency TT, citing undisclosed sources, said the debt office had found the collateral put up by Saab for the loan guarantees was sufficient to allow the government to grant support.

Sweden's debt office, handling negotiations with Saab on behalf of the government, declined to comment on the report and said it had yet to supply the cabinet with its recommendation on the loan.

In mid-October, Sweden's enterprise minister Maud Olofsson told Reuters a state guarantee for the EIB loan was still a "couple of months" away.

U.S. carmaker General Motors cited improving markets when cancelling its proposed but much-delayed sale of European unit Opel on Tuesday. [ID:nSP536647] (Editing by Dan Lalor) ($1 = 0.6734 euro)