Awwal 11, 1432 / April 15, 2011, SPA -- The Swedish government approved a plan to allow cash-strapped car maker Saab to raise funds that would see production at its main plant in western Sweden recommence, Economy Minister Maud Olofsson announced Friday according to dpa. Production at Saab's main plant at Trollhattan was halted last week due to the firm's inability to pay suppliers. The proposal will allow Saab's Dutch-based owner Spyker Cars to sell and lease back property owned by Saab to solve the cash flow problem. State approval was needed as the property was used as collateral for a European Investment Bank loan of 400 million euros (562 million dollars). Olofsson said that, due to the revision, the loan agreement has been reduced to 280 million euros. The EIB funds are earmarked for projects such as green technology. A year ago Spyker - a niche producer of sports cars - took over the loss-making Swedish carmaker after US automotive giant General Motors (GM) began winding down the company.
