Peugeot Bank’s State Guarantee Gets Temporary EU Approval
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PSA Peugeot Citroen won temporary European approval for 1.2 billion euros ($1.6 billion) of French-backed bonds and now must justify the state-aid package designed to save the automaker from collapse.
Peugeot’s financing arm, Banque PSA Finance, will be able to sell three-year bonds backed by the French government for the next six months, the European Commission said in a statement today. To obtain final approval, France must submit a restructuring plan within six months to show how Peugeot and the bank unit intend to become profitable without state help.