Sunday

18th Nov 2018

EU investment bank pauses VW lending

  • Volkswagen was 'a long-term partner of the bank for many many years' (Photo: Frank Kehren)

The European Investment Bank (EIB) is not lending any new money to Volkswagen “for the time being” while the German auto manufacturer is being investigated for its use of defeat devices in emissions tests.

“In order to be on the safe side, and also to preserve the interest of the bank and that means also the interest of our shareholders, we have decided to put on hold any new loans to Volkswagen for the time being,” said EIB president Werner Hoyer Thursday (14 January) at a press conference in Brussels.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

  • Hoyer: "Astonished, disappointed and we are now concerned" (Photo: Council of European Union)

He called the German company “a long-term partner of the bank for many many years”. The EU's bank has invested in various research and development projects. In October it said it had around €1.8 billion in outstanding loans to VW.

One of those loans may be involved in the recent scandal, in which Volkswagen installed illegal software that allowed cars to come out of tests as much cleaner than they actually were.

“Whilst our review continues, based on our findings, so far we cannot exclude that there may be a link with a part of a €400 million EIB loan to Volkswagen signed in 2009 – that's Volkswagen Antrieb RDI – and the investigated activities,” said Hoyer.

“It still needs to be established whether any part of the loan was misused in that way. The loan was repaid by Volkswagen in full, according to schedule, in 2014,” the bank's president added.

He said that according to current information available to the bank “no other EIB operation either repaid or outstanding has a link to the defeat software in any way”.

“We were astonished, disappointed and we are now concerned about the allegations, including indications by senior company executives, of improper and possibly fraudulent behaviour by Volkswagen,” added Hoyer.

He said the ban on Volkswagen loans is based on “information, findings and recommendations emerging from our own review and from ongoing judicial investigations” and that the bank will review its assessment “on a regular basis”.

MEPs to probe what EU knew on Dieselgate

MEPs to investigate if commission and national governments did enough to stop use of cheat software on emissions tests, Inquiry committee to have access to sensitive documents.

Investigation

Diesel cars still dirty, despite huge EU loans

The European Investment Bank lent billions to carmakers, in part to clean up diesel cars. But diesel cars are still dirty, prompting questions if the money was well spent.

Investigation

EU probe into VW loan remains opaque

EU anti-fraud agency and European Investment Bank tight-lipped on report that said Volkswagen deceived the bank when acquiring a €400 million loan.

News in Brief

  1. US warns EU banks and firms against trading with Iran
  2. Merkel urged Romania not to move embassy to Jerusalem
  3. Protesters call for Czech leader to step down
  4. Former German chancellor labelled 'enemy' of Ukraine
  5. French lead opposition to Brexit deal on fisheries
  6. Private accounts of Danske Bank employees investigated
  7. UK's May defends Brexit deal to MPs, after ministers resign
  8. Brexit MP calls for 'no confidence' vote on May

Stakeholder

An open China brings opportunities to Europe

Some 60 years ago, the first major World Fair after World War II was held in Brussels. Sixty years on, China International Import Expo (CIIE), the first world expo dedicated to expanding imports, will open in Shanghai, China.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSTheresa May: “We will not be turning our backs on the Nordic region”
  2. International Partnership for Human RightsOpen letter to Emmanuel Macron ahead of Uzbek president's visit
  3. International Partnership for Human RightsRaising key human rights concerns during visit of Turkmenistan's foreign minister
  4. NORDIC COUNCIL OF MINISTERSState of the Nordic Region presented in Brussels
  5. NORDIC COUNCIL OF MINISTERSThe vital bioeconomy. New issue of “Sustainable Growth the Nordic Way” out now
  6. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  7. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  8. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  9. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  10. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  11. International Partnership for Human RightsCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  12. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs

Latest News

  1. Brexit dominates EU affairs This WEEK
  2. How the EU commission got tunnel vision on self-driving cars
  3. No-confidence calls against May put Brexit deal in doubt
  4. Key points of the Brexit deal (if it ever comes into effect)
  5. Romania heaps scorn on 'revolting' EU criticism
  6. US steps in to clean up Cyprus
  7. 'Decisive progress' on Brexit as British cabinet backs deal
  8. Asylum for Macedonia's ex-PM puts Orban on spot

Join EUobserver

Support quality EU news

Join us