Swedish Radio Reports Swedish Government Automotive Loans Untouched & Still Available

Posted on 31. May, 2009 by Ryan in 2000-2009

Photo Credit: Swedish Radio

The Swedish Government’s Jöran Hägglund, fighting for Saab Automobile’s survival, says that the Swedish Government loans have been untouched since December, 2008 and are still available according to Swedish Radio.

The folks at the Swedish Government, Saab Automobile are happy to hear that the strict rules for these loans actually had a purpose, to keep the money in Sweden while also keeping them out of General Motor’s hands, who are about to file for bankruptcy this coming week.

Car Industry Funds “Untouched”
Statssekreterare Jöran Hägglund. Foto: Markus Dahlberg/Scanpix.

The Swedish government won’t make it easier for Sweden’s ailing car industry to get money from the support package set up by the government to help car-makers like Volvo and Saab last year.

The 3.4 billion US dollar package was set up just before Christmas, but almost 6 months later not a single penny has been paid out.

Top civil servant at the Ministry for Enterprise, Jöran Hägglund, says he is glad that no money has been handed out yet. He told Swedish Radio News that had the rules been more flexible, then much of the money could have ended up in the central coffers of General Motors in the USA, currently about to apply for Chapter 11 bankruptcy. General Motors is the owner of Saab motors.

The government has not yet applied for funds from the EU’s globalisation fund either, according to Swedish Radio News. Labour Market Minister Sven-Otto Littorin promised to do so back in February, but no application has yet been sent in. The department blames the complicated application procedure for the delay. Finland, Germany, France, Malta and Spain have already received money from the fund.

Tags: Finland, France, General, Germany, Malta, Market Minister, Spain, Sweden, United States, USD