The audit court in Italy has formally approved a crisis loan to Fiat-Chrysler Automobiles (FCA), the largest ever to a European automaker according to a report by news agency Reuters.
The record €6.3 billion loan received criticism from locals after FCA moved its headquarters to the Netherlands ahead of a merger with Peugeot-Citroen-Opel (PSA), but Italian authorities have offered assurances that the money will remain in the country.
Pietro Gorlier, regional chief operating officer at FCA, backed those guarantees: “100 per cent of the money this facility provides will be directed to our Italian business".
As previously reported by CarAdvice, FCA has now secured an estimated €17.55 billion in loans.
This latest credit facility is provided by Italy's largest retail bank Intesa Sanpaolo, of which 80 per cent is guaranteed by the Italian government.
It comes as FCA sought approval from the European Union to merge with PSA, which would create the fourth largest car company in the world.
The $USD50 billion deal came under threat recently, with the EU raising concerns the deal would reduce competition in the small commercial van market.
Part of the merger includes a €5.5 billion extraordinary dividend to be paid to shareholders.