The Argentinian government has plane to push US$100m in state loans into the country’s auto industry, reports today suggested.
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The Argentine affiliate of General Motors is to receive state aid in the form of a US$70m loan, it has emerged, in order to safeguard the business whilst GM enters into Chapter 11.
The money for the loan will come from pension funds controlled by the state-run National Social Security Administration. The money will be used largely to fund a project to manufacture an Argentine car.
The deal was announced by the president Cristina Kirchner. She said: “We are signing a loan contract and are not going as far as buying shares as (US President Barack) Obama did.”
According to a report by AFP, which cited government sources, the Argentine authorities also have plans to loan another $30m to local affiliates of Peugeot-Citroen and Germany’s Mercedes Benz.
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