BRUSSELS, Oct 21 (Reuters) - The European Investment Bank said on Wednesday it had granted a 400 million euro ($599 million) loan to ailing Swedish car maker Saab.
The money, from the European Union's financing arm, is expected to help in the planned sale of the firm by its parent General Motors.
Swedish luxury car maker Koenigsegg, backed by U.S. and Norwegian investors, struck a deal this year to buy the Saab Automobile business, but its ability to finance the purchase and future Saab production has remained in question.
"The loan to Saab has been approved," an EIB spokesman said.
The loan, to be guaranteed by the Swedish state, has been seen as a key element of financing plans.
The funding is part of the EU's aid programme for companies hit by the global economic crisis. (Reporting by Marcin Grajewski; Editing by Dale Hudson)