German State OKs Opel Aid

Thuringia, German state that hosts an Opel factory, says it will shoulder a loan guarantee for the automaker, but there’s no decision yet from Germany’s federal government.

BERLIN (AP) -- A German state that hosts an Opel factory says it's prepared to shoulder a loan guarantee for the struggling automaker, but there's no decision yet from Germany's federal government.

Thuringia's state economy ministry spokesman Stephan Krauss said the regional government on Tuesday approved in principle to guaranteeing credit to the tune of euro27.2 million ($33.8 million).

Thuringia is home to Opel's Eisenach plant -- one of four in Germany. Three other states and the federal government have yet to decide on the General Motors Co. unit's call for loan guarantees totaling more than euro1 billion.

Federal Economy Minister Rainer Bruederle said in Brussels on Tuesday that he didn't expect a final decision before "the end of May or the beginning of June."

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