VW agree terms of bridge loan with banks

A car undergoes standard emissions testing under laboratory conditions during a workshop for media on automobile emissions at the DEKRA testing facility on November 25, 2015 in Klettwitz, Germany.

Volkswagen has reportedly reached a deal with banks on the terms of a bridge loan to help it handle the costs of its emissions scandal. Thirteen banks are said to be offering credit portions of either 1.5 billion euros (Dh 5.83 billion) or 2.5 billion euros (Dh 9.72 billion) each, or a total of at least 20 billion euros (Dh 77.8 billion). Analysts have said securing fresh funds would help signal investors that the VW remains a robust borrower. The German automaker is facing hefty regulatory fines, lawsuits and refits of about 11 million diesel vehicles. Volkswagen has set aside 6.7 billion euros (Dh 26 billion) for the initial costs of the scandal, but expects additional expenses of at least 2 billion euros (Dh 7.78 billion) for falsifying certification of carbon dioxide (CO2) emissions.

More from Business

Coming Up on Dubai Eye

  • The Business Breakfast

    10:00am - Noon

    The Business Breakfast is the day’s must listen for the UAE’s business leaders, and those who aspire to be.

  • The Best of Dubai Eye 103.8

    Noon - 7:00pm

    Hear the highlights from the week gone by on Dubai Eye 103.8. Listen again to the best interviews, advice and the top stories that has gripped our conversation this week.

BUSINESS BREAKFAST LATEST

On Dubai Eye

  • Is There Sufficient House Supply In UAE

    Dubai’s current population is more than double compared to almost twenty years ago, which now stands at 3.7 million. Lots of families are also moving to the UAE now. So what does it mean for the property market?

  • Noon's First Female Delivery Driver

    Glory Ehirim Nkiruka is Noon’s first ever female delivery driver. In her first ever interview, she explained why she loves her job, despite the heat!