Renault reaches deal on 5 billion euro state-backed loan

French automaker Renault has reached a deal with banks on a 5 billion-euro ($5.47 billion) state-guaranteed loan to help the automaker deal with the coronavirus outbreak, two sources knowledgeable about the matter told Reuters on Tuesday.

The state-guaranteed loan, which the automaker had been working on for about a month, should be submitted right to the board of directors, the sources said, before being approved officially by the economy ministry.

Renault has not commented on the issue yet.

The automaker, which posted a loss in the last year and had been having a hard time with faltering demand before the pandemic, has already flagged it would seek state aid through this format, in an attempt to shore up its liquidity.

Other companies including Air France KLM have also secured bailout deals through state-supported loans, which are funneled through commercial banks.