Brussels, 17/05/2006 (Agence Europe) - The Commission has authorised a state guarantee scheme introduced by France. Guarantees will be granted to financial institutions providing loans to French shipyards to finance the construction of large ships. The scheme provides for premiums calculated according to the risks related to the loan to be charged. The level of premiums will cover the risks of payments and the administrative costs of the scheme, so that the scheme will be self-financing, says the Commission, and will not constitute state aid. The Commission approved a similar scheme in Germany in December 2003, and in the Netherlands in July 2005. “Financial institutions remain reluctant to finance the construction of large ships. I am therefore pleased to approve a scheme which is free of state aid and which can help French shipyards to raise finance,” said Neelie Kroes, Competition Commissioner.