July 24, 2013 / 11:46 AM / 4 years ago

EU regulators to approve Peugeot state loan next week - source

BRUSSELS, July 24 (Reuters) - European Union regulators will approve next week a 7-billion-euro ($9.25 billion) French state aid loan guarantee for PSA Peugeot Citroen’s financing arm aimed at ensuring the French carmaker’s viability, a European Commission source said on Wednesday.

The Commission, which enforces state-aid rules in the 28-country European Union, opened an investigation into the case in May to decide whether the measure distorts competition.

A Commission source said the EU competition authority will clear the guarantee after examining concessions offered by Peugeot.

“The discussion was about the conditions that could allow the Commission to approve such a guarantee under EU state aid rules, that is, on the restructuring plan, not on the amount of the guarantee itself,” the source said. (Reporting by Foo Yun Chee; editing by John O‘Donnell)

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