EU Bank Chief Could Recall VW Loans
World Economy

EU Bank Chief Could Recall VW Loans

The European Investment Bank could recall loans it gave to Volkswagen, its president told a German newspaper, BBC reported.
Werner Hoyer told Sueddeutsche Zeitung that the EIB gave loans to the German carmaker for things like the development of low emissions engines.
He said they could be recalled in the wake of VW’s emissions cheating.
The paper reported that about €1.8 billion of those loans are still outstanding.
Hoyer is quoted as saying that the EIB had granted loans worth around €4.6 billion to Volkswagen since 1990.
“The EIB could have taken a hit [from the emissions scandal] because we have to fulfil certain climate targets with our loans,” the Sueddeutsche Zeitung quoted Hoyer as saying.
Hoyer was attending the International Monetary Fund’s meeting in Lima, Peru.
He added that the EIB would conduct “very thorough investigations” into what VW used the funds for.
Hoyer told reporters that if he found that the loans were used for purposes other than intended, the EU bank would have to “ask ourselves whether we have to demand loans back”.
He also said he was “very disappointed” by Volkswagen, adding the EIB’s relationship with the carmaker would be damaged by the scandal.
Volkswagen admitted that about 11 million of its vehicles had been fitted with a “defeat device” - a piece of software that duped tests into showing that VW engines emitted fewer emissions than they really did.
Hoyer’s comments come days after VW’s US chief Michael Horn faced a Congress panel to answer questions about the scandal, which has prompted several countries to launch their own investigations into the carmaker.
On Monday, VW’s UK managing director Paul Willis is due to appear before members of parliament at an informal hearing.


Short URL : https://goo.gl/i558Tn
  1. https://goo.gl/7anJWA
  • https://goo.gl/bDHRi3
  • https://goo.gl/Akouhm
  • https://goo.gl/L0NqYq
  • https://goo.gl/rGxYvF

You can also read ...

If both sides continue with tit-for-tat tariffs, the inflation would lead to further increases in interest rates  and give rise to disturbances in the currency markets.
The trade war between the US and China risks substantially...
Hong Kong’s GDP fell to 3.5% in the second quarter.
The outlook for Hong Kong’s economy is darkening as rising...
Norway to Surpass Sweden
Sweden’s economic prospects have dimmed in recent months and...
Many emerging market economies are better prepared now because they have a good international reserve position and they allow their exchange rates  to float more freely.
Italian economist Claudio Borio is considered an authority in...
China Growth Momentum Slows
China’s economy hit a mid-year rough patch as efforts to curb...
Crypto Market Struggles as Bitcoin Dips Below $6,000
Bitcoin touched below $6,000 and dozens of smaller digital...
Lebanon Economy Struggling
Lebanon’s economy has been in a precarious position in recent...
Finnish GDP May Slow
The Finnish economy remained robust in the spring and early...