Goverment to back car lease firm loans

Monday 24 November 2008

The Netherlands-based car lease firm Leaseplan, which is owned by Volkswagen and two Middle East state funds, is to become the first company to receive backing from the Dutch government’s €200bn loan guarantee scheme, reports Monday’s Volkskrant.

In exchange for ‘a premium in line with the market’, finance minister Wouter Bos will guarantee loans of up to €1.5bn which the company needs to buy cars, reports the paper.

‘Leaseplan has a banking licence, meets all the necessary requirements and will pay for it [the loan],’ the Volkskrant quotes Bos as saying.

Leaseplan made its application for the loan guarantee last week. (click here for story)

The company wants loan guarantees because its credit rating has been lowered, making it more expensive to borrow money.

The government’s €200bn guarantee scheme for inter-bank loans was announced on October 13 and is intended to kick-start the flow of cash between banks and to restore confidence in the financial markets.

Why is the government guaranteeing loans for a foreign-owned car lease company? To read our editorial column, click here

Should Leaseplan get a loan guarantee? To take part in our poll, click here

© DutchNews.nl

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