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PSA and Renault start paying back loans early

By / 10 years ago / Latest News / No Comments

Both carmakers have each paid back €1 billion of the €3 billion that they were lent by the French State in April 2009, although the first instalment wasn't due until next year.

In a statement, PSA Peugeot Citroen said: 'The reimbursement will be made out of existing liquidity resources, permitting the group to reduce gross debt and to realise significant interest expense savings.'

Renault commented in a separate statement: 'The reimbursement will be made ahead of plan compared with the initial agreement, permitting the group to reduce gross debt and lower interest expenses.'

The two carmakers both recently reported a return to profits.

Renault posted a net profit of €780 million for H1 2010 compared to a loss of €2.73 billion for the first half of 2009. Group revenues were up 23.1% to a total of €19.67 billion.

Meanwhile earlier this year, PSA Peugeot Citroen reported its 'best half-year ever', helped by new model launches and fast-growing sales in China.

For the first six months of 2010, the carmaker posted a net profit of €680 million compared to a loss of €962 million for the first half of 2009. Revenue was up 20.8% to €28.39 billion from €23.5 billion in H1 2009.

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