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| UK ready to guarantee JLR loans |
| Press Trust Of India / London May 18, 2009, 00:11 IST |
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The UK government has said that it is ready to guarantee loans to Tata group-owned Jaguar Land Rover (JLR), for which it is talking with European banks on behalf of the cash-strapped car maker.
While making it clear that the primary financial responsibility of JLR rested with the Tatas, the UK continues to hold “confidential discussions” over both short- and long-term financing and business plans, an official at the British government’s Department of Business, Enterprise and Regulatory Reform (BEFR) said.
JLR, which was acquired by the Tatas in April last year for £1.15 billion from US auto giant Ford, has been facing financial troubles due to the global economic slowdown, and the company had sought assistance from the UK government. Earlier in a media interview, Tata Group Chairman Ratan Tata had said he only wanted the UK government to facilitate access to credit and not a bailout for JLR.
Besides, some other media reports have said recently that talks between the Tatas and the UK government have hit an impasse.
“The government wants to see JLR safely sail through difficult trading times and provide stability for the company and its employees. We regard JLR as a viable company with good long-term prospects,” the BEFR spokesperson said.
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