The Swedish government Wednesday offered a state guarantee to the European Investment Bank for loans to Volvo Cars owned by China's Geely Group. 'Today, the government has made a decision on giving a state guarantee to provide 3.55 billion kronor (about 510 million U.S. dollars) to Volvo. The EIB will provide the loans,' Enterprise Minister Maud Olofsson said at a press conference here. She said the loans must be used in specific innovative and environmentally friendly projects. 'They can loan money for the development in green path,' Olofsson said. Olofsson also said the money would mainly be used in Sweden, even though Geely owned Volvo, because production in Sweden and in China are separated. 'It is important that the projects will be carried out in Sweden and we can keep the competence and knowledge in Volvo,' Olofsson said. She added the money would be given out in a number of different situations so that they had 'the possibility to control what people have done with the money and that is spent in the country.' Volvo planned to borrow 6 billion kronor (862 million U.S. dollars) a few months ago, but now the number has changed substantially. China's Zhejiang Geely Holding Group completed the purchase of Volvo in August, paying 1.3 billion dollars in cash and issuing Ford a 200-million-dollar note. 