IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 24 Oct 2012 | Removal date: open ended
Still in force

Loan guarantee

On 7 January 2013, France informed the EU about an ongoing aid scheme to rescue 'Banque PSA Finance' (PSA bank). 
 
PSA bank is a 100 per cent subsidiary of the PSA Group and is specialised in the financing of car sales from car manufacturers Peugeot and Citroen.
 
The PSA bank has faced difficulties to refinance itself on the market since the end of 2012 (par. 22, letter from the EC to France, Brussels 11 February 2013). On 24 October 2012, the state provided a guarantee of EUR 1.2 billion over 3 years (par. 29). Consequently, the state is bearing the risk of default but in this case is not providing liquidity (par. 48).
 
The EC argues that 'the measure is likely to improve the position of PSA bank with respect to other financial institutions, therefore trade between the member states is affected' (par. 62, translation from the French original text).
 
Furthermore, the Commission observes that 28 per cent of the car sales (by the PSA Group) are financed via the PSA bank (par. 68). Therefore, the Commission concludes that 'in absence of the state guarantee, the cars sales would directly be affected' (par 68, translation from the French original text).
 
The EC finally states that the PSA bank is not the only beneficiary of the measure but the whole PSA group is benefitting from the state guarantee (par. 69).
 
Update: SA.35611 - Restructing aid for PSA group
 
On 13 March 2013, the French authorities notified an amended restructuring plan for the PSA group that foresees an increase in the guarantees (bonds) from EUR 1.2 billion to 7 billion. Furthermore, the plan includes an additional EUR 85.9 million for R&D of CO2 neutral cars.
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other

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