Merkel: Opel Could Get Guarantees From EUR100 Billion German Fund
January 12 2009 - 8:08AM
Dow Jones News
German carmaker Opel, a European unit of General Motors Corp.
(GM), could be one company to receive liquidity guarantees as part
of the planned EUR100 billion rescue fund for German companies in
need of financing amid tight credit markets, Chancellor Angela
Merkel told HR info radio.
"Opel has already started to negotiate about possible state
guarantees weeks ago, these negotiations are continuing," Merkel
said. "Opel hasn't had an urgent need for any decision before
Christmas. But of course, this is the case for a guarantee...Opel
would be part of such a guarantee line."
Her comments come ahead of a meeting of senior ruling grand
coalition party officials Monday evening. They are set to agree on
the EUR100 billion fund, which Merkel said centers "explicitly,
mainly around guarantees" for liquidity, as well as a second fiscal
stimulus plan worth roughly EUR50 billion.
In November, Opel and GM Europe met with the government to talk
about a possible state liquidity guarantee. At the time, Merkel
said a possible state liquidity guarantee for Opel would depend on
any finance being put to use in Germany.
The head of GM's European division, Carl-Peter Forster, has said
the talks centered around the possible need of a guarantee of
slightly over EUR1 billion.
-By Andrea Thomas, Dow Jones Newswires; +49 (0)30 2888 4126;
andrea.thomas@dowjones.com
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