State to ask Renault to use the EIB loan only for Titu centre

The Romanian state will ask Renault to use the State-guaranteed loan taken out from the EIB (European Investment Bank) exclusively for the car testing centre in Titu and to pay an annual risk premium of 0.55% of the guarantee, which amounts to 66.6 million euros, sources close to the negotiations told Mediafax news agency. The guarantee will be granted after the authorities evaluate the automotive builder’s capacity to repay the loan from its own sources, in order to limit the guarantee execution risks. “The analysis of costs entailed by the EIB loan, – with a seven-year maturity, repayment on a quarterly basis and an interest rate of 6% per year, has revealed that Renault will be able to repay the State-guaranteed loan,” said the quoted sources.