France

French Government Close to PSA Peugeot Citroën Bailout Agreement

Will provide at least €5 billion of financial guarantees

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France is close to agreeing an effective bailout of PSA Peugeot Citroën, which would see the government providing between €5bn and €7bn of financial guarantees to the ailing carmaker's lending arm.

The move would mark the biggest intervention by France's government in the country's car industry since 2009, when it extended Peugeot and Renault €6bn of low-interest loans to bolster their liquidity after the banking crisis.