Renault seeks state-backed loans to tackle Corona


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“Renault” is seeking state-backed loans to counter Corona, today, Friday, 10 April 2020 09:40 PM

The head of the French “Renault” said that the company is seeking more than $ 5 billion in state-backed loans to contain the influence of Corona’s virus, while rejecting the idea of ​​nationalizing the company.”We are working on an idea of ​​bank loans that are guaranteed by the state, and this will help us to overcome this bad period,” Jean-Dominique Sennard said in comments to a local radio station reported by Bloomberg on Friday.

While the head of the French company ruled out the possibility of the state regaining control of the company, saying, “We are not within this vision.”

The wages of “Cennard” and interim CEO “Clotilde Delbos” were reduced by 25 percent during the second quarter of this year at least.

Also yesterday, Renault canceled its dividend to maintain liquidity after its plant production ceased amid the national shutdown.

“Cinnard” pointed out that “Renault” is working to restart its factories in Portugal, Romania and Russia, after it joined the global auto manufacturers in closing factories after governments imposed restrictions on citizens’ movements to limit the spread of the virus.

French Finance Minister Bruno Lemerre has pledged to provide strong support to companies including Renault, while at the same time threatening to cut or withhold financial support from companies that pay dividends to shareholders.


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