Friday, May 8, 2009

Talks still on for securing JLR loan: UK

S Kalyana Ramanathan / London May 7, 2009

The United Kingdom’s Department of Business, Enterprise and Regulatory Reform (BERR) continues to insist that it is in talks with India’s Tata Motors’ owned Jaguar Land Rover (JLR) for guaranteeing the £340 million loan recently approved by Luxembourg-based European Investment Bank (EIB). “These negotiations are continuing,” BERR said in a statement. “Any government financial assistance must, of course, protect taxpayers' money. But on this basis we are prepared to help, although not on any terms,” it added.

The media in the UK, over the last fortnight, has been reporting that the talks between JLR and the UK government have been heading for a collapse over differences in the terms of the guarantee to be provided by the UK government.

The BBC said on its website said that financial support for Jaguar Land Rover from EIB was in jeopardy after a dispute over the terms of the loan. Quoting industry experts close to the talks, it said the carmaker would not accept the tough conditions imposed by the British government in return for guaranteeing the loan.

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