President Basescu signed EIB guarantee agreement for Ford into law

President Traian Basescu on Thursday signed a decree on the promulgation of the Law on the ratification of the guarantee Agreement between Romania and the European Investment Bank aimed at the Romanian state's guaranteeing the aid for Ford auto-maker based in Craiova (southern Romania), the President's Office announced.

The Agreement signed in Bucharest on this Jan. 21 targets the 80 percent guarantee of the obligations resulting from the 400 million euro financing contract between the EIB and S.C. Ford Romania S.A. aimed at upgrading the Craiova-based car-making plant.

The law on the Agreement ratification was passed by the upper Senate house on March 23 by 73 votes in favour, three abstentions and no vote against.

'In order to achieve the investment in Romania, Ford Europe company negotiated a 600 million euro financial package with the EIB that includes the 400 million euro loan aimed at funding the investment spending made in Romania and a 200 million euro loan for financing the expenditure related to the design, research and development carried out in Germany', State Secretary at the Finances Ministry Bogdan Dragoi had said at the time.

He also stressed the EIB had granted the loan on condition that it be guaranteed by the Romanian state and the German state and he announced Ford Romania company will pay the Romanian state 2 percent guarantee premium for the entire duration of the guaranteed loan.Parliament's lower Deputies' Chamber had voted for the law on March 17.