France Govn Seeks EU Approval for Banque PSA Rescue Plan image

Monday, January 7th, the French government requested the EU Commission approval for the Banque PSA rescue plan.

According to the French daily Les Echos report published today, January 9th, the French government officially requested the EU Commission approval to implement the rescue plan for PSA Peugeot Citroen’s financing arm, Banque PSA Finance. In December, EU Competition Commissioner Joaquin Almunia said that initially, the Banque PSA debt rescue came as financing help for the lending operation and therefore didn’t need approval from Brussels.

On the other hand, the 7 billion euro ($9.2 billion) state loan guarantee was seen as restructuring aid, therefore the Commission decided to ask the French authorities to seek approval. Les Echos said that the rescue deal for the financing arm will have to be analyzed by the EU competition authorities and that an answer is expected within two months.

“This is a normal process,” a spokesman for PSA said. “Following the vote of the French parliament on Dec. 30 on the state guarantee brought to Banque PSA Finance, a temporary authorization should be given within two months before a final authorization. As for concessions, there is nothing new compared with what was announced last year.”