Sarkozy Gives Renault 3Million Euro Loan
The President of France, Nicolas Sarkozy has confirmed that French car manufacturer Renault has been given a 3 million Euro loan from the government.
Renault, who are one of F1’s largest teams and have been successful in the sport, are struggling amid the global economic crisis.
They will recieve the 3 million Euros, along with the Peugeot/Citroen group, and it will have to be paid back over a 5 year period at a 6% interest rate.
Sarkozy, who has been criticised by the French population, has led to both car manufcaturer’s shares sharply rising with this move.
“This is not a gift. It is not a subsidy. It is a loan offered at an interest rate of six percent,” Sarkozy insisted.