German committee rejects GM aid request: report

8th June 2010, Comments 0 comments

A German government steering committee has rejected a request from General Motors for 1.1 billion euros (1.3 billion dollars) in state loan guarantees to help restructure its Opel unit, a report said on Tuesday.

"General Motors has sufficient financial resources to finance the restructuring of its European division on its own," Dow Jones Newswires cited an internal economy ministry document as saying.

GM is prepared to pump 1.9 billion euros into the restructuring plan but is seeking 1.8 billion euros in loan guarantees from European governments where it has operations to help it raise funds on capital markets.

Germany, home to about half of the 50,000 people employed by GM in Europe, which includes Vauxhall in Britain, has been asked to provide 1.1 billion euros in guarantees.

The final decision rests with Chancellor Angela Merkel and Economy Minister Rainer Bruederle.

© 2010 AFP

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