LIMA: President European Investment Bank (EIB) Werner Hoyer on Monday said EIB could demand back loans it gave to German Volkswagen for development of low emissions engines.
He said they could be recalled in the wake of VW’s emissions cheating. About €1.8bn (£1.3bn) of those loans are still outstanding on VW.
Hoyer is quoted as saying that the EIB had granted loans worth around €4.6bn 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,’ Hoyer said.
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.
