EC saves Warsaw Car Manufacturer from insolvency

However, to make dreams come true, FSO needs the European Commission's (EC) consent for the Polish government to grant aid for the factory. The Treasury would have to guarantee 60% of a USD $100 million loan for FSO to begin production of a new vehicle, the Chevrolet T-250 (working name) under the General Motors license. It would also have to annul zl. 40 million in debt execution costs and agree that overdue taxes will be paid in installments. During the August 31 talks of the company's board, the representatives of the EC admitted more support was necessary for the European car industry. However, they set some requirements: the EC wants to make sure the Polish public aid will affect free competition on the European market, it also demands full documentation on the whole Ukrainian AvtoZaz capital group.(Puls Biznesu, p.8) J.L