France’s Renault reaches deal on 5 billion euro state-backed loan: sources

PARIS (Reuters) – French carmaker Renault has sealed a deal with banks on a 5 billion-euro ($5.47 billion) state-guaranteed loan to help the company to cope with the coronavirus outbreak, two sources close to the matter told Reuters on Tuesday.

The state-guaranteed loan, which Renault had been working on for about a month, should be submitted shortly to the board of directors, the sources said, before being approved formally by the economy ministry.

A Renault spokesman was not available immediately for a comment.

The firm, which posted a loss in 2019 and had been struggling with faltering demand before the pandemic, has already flagged it would seek state aid through this format, in a bit to shore up its liquidity.

Other companies such as Air France KLM have also secured bailout deals through state-backed loans, which are funnelled through commercial banks.

(Reporting by Gilles Guillaume; Additional reporting by Maya Nikolaeva and Gwenaelle Barzic, Writing by Matthieu Protard, Editing by Sarah White)