Friday

21st Sep 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. UK's Brexit plan 'won't work', says EU's Tusk
  2. Austria ex-chancellor hints at running for Juncker's job
  3. Greece to move asylum-seekers from overcrowded Lesbos camp
  4. Transatlantic soya trade soars due to trade wars
  5. EU tables strategy for connecting Europe and Asia
  6. Bulgaria backs Hungary in dispute with EU
  7. Trump urged Spain to build Sahara wall to stop migrants
  8. EU-Arab League summit proposed for February in Egypt

Airbnb agrees to clarify pricing for EU

The justice commissioner says the accommodation-rental website will better inform users about prices, and about the legal status of their 'hosts'. Facebook, however, could face sanctions if it doesn't comply with EU rules.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  2. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  3. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  4. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  5. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  6. IPHRCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  7. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  8. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  9. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  10. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  11. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  12. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want

Join EUobserver

Support quality EU news

Join us