PSA and Renault start paying back loans early
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.