EU Launches In-Depth Probe into 49.6 Mln Euro State Guarantee for Romania's Oltchim

The Commission has doubts whether the state guarantee, issued under an existing aid scheme approved by the Commission in June, is in line with its temporary framework for state aid to the economy during the crisis, the EU executive said in a statement.

In particular, the Commission needs to verify whether Oltchim was already in difficulties before the current financial and economic crisis, in which case it would not qualify for temporary framework aid.

The guarantee at stake would be issued by EximBank to cover 80%, that is 49.6 million euro, of a 62 million euro commercial loan for the acquisition of the company's raw materials supplier Arpechim, the Commission said.

Oltchim's stock, listed on the Bucharest Stock Exchange, closed 7.44% up at 0.26 lei ($0.09/0.06 euro) on Thursday.

($ = 0.6723 euro)