Swedish premier defends decision to hold off loans to Saab (Roundup)

Stockholm - The Swedish government Monday defended its decision to hold off on offering state loan guarantees to troubled Swedish carmaker Saab Automobile as Saab's US owner General Motors declared bankruptcy. As the size of GM's debt load was revealed in the US, Prime Minister Fredrik Reinfeldt said it was 'fortunate' that Swedish government funds had not been put into the GM 'bankruptcy estate.' The government has repeatedly rejected calls by among others the opposition Social Democrats and unions to offer loan guarantees. Reinfeldt and Finance Minister Anders Borg told reporters that the government's view was that it was necessary to get a clear picture of Saab's new owner before putting taxpayer's money at risk. 'We have stated clear and simple terms for the loan guarantees,' Borg said, noting that these included that the money would not be used to pay dividends and jobs would remain in Sweden. Saab last week was granted an extension until August 20 of its current bankruptcy protection as it attempts to reorganize its business. The brand filed for bankruptcy protection in February when GM declared its intention to shed Saab as part of its own restructuring efforts. Meanwhile, Saab chief executive Jan Ake Jonsson underlined that Saab was 'not included' in the GM filing and said Saab was continuing its efforts to reorganize the company. Saab was making 'good progress' in its search for a new owner, he said in video-taped remarks released by Saab. 'The interest... is very high,' Jonsson said, adding he hoped to sign an agreement by the end of June. 'We are looking of course for financially strong companies, companies that have a long-term interest in Saab Automobile as well as companies where Saab actually is a good fit, in other words where we can add value into whatever organization we are talking about,' Jonsson said. Jonsson said Saab has four new models ready to be launched in the coming 18-month period. Saab recently shed 700 employees from its workforce of about 4,000 in Sweden. Most work at its Trollhattan plant. GM's interest in Saab - one of Europe's smallest car makers - dates back to the early 1990s. The company took full control in 2000.