Government to guarantee car lease loan

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.

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 Volkskrant.
‘Leaseplan has a banking licence, meets all the necessary requirements and will pay for it [the loan],’ the paper quoted Bos as saying.
In a statement on Monday, Leaseplan financial director Guus Stoelinga said: ‘We think the guarantee scheme is a good initiative and hope relationships on the capital market will normalise when other banks also use it.
‘The first positive signs from similar schemes abroad are starting to be seen. This approval confirms that Leaseplan meets the strict conditions that the Dutch government has set out for use of the [guarantee] scheme.’
Leaseplan has had a banking licence since 1993 and is under supervision of the Dutch central bank which reviewed the company’s liquidity and solvency rate before authorising the government’s financial backing.
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

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