The minister explained that this investment is extremely important for the country, as both the jobs created and the taxes paid by the plant will make an important revenue source for the Craiova authorities.
President Traian Basescu declared on March 19 that the European Investment Bank (EIB) will approve at the end of April a 400 million euro credit for Ford and during the second half of the year it will also allot a 200 million euro one for Renault.
The aim is to help protect investments in Romania after the car market was pretty shaken up by the crisis and the loans belong to a program designed by the European Union to support the economies of state members.
Basescu added that both Ford and Renault need the government to guarantee 80 percent of the loan.
French group Renault, the owner of the country's largest carmaker Dacia, recently required the Romanian government a state aid worth 170 million euros for Dacia, the testing center in Titu, the suppliers of Dacia and also for Nissan Romania.
Romania's Chamber of Deputies approved on March 10 an emergency ordinance allowing the state to grant a 143 million euros state aid for the Ford plant in Craiova in the period 2008 – 2012, for regional development. The car maker purchased the plant in March 2008 and committed to investing some 675 million euros by the end of 2012.
The auto industry in Romania received one of the largest blows in the background of the crisis after global demand fell and caused setbacks in production. Romanian president declared at the end of January that the state would support investments for vehicle production both at Ford and Renault.
Romania's government willing to give Ford the requested guarantees of EUR 320m
