EU could recall VW money

The European Investment Bank (EIB) could recall millions in loans made to Volkswagen over its involvement in the ongoing diesel emissions scandal.

Werner Hoyer, chief executive of the EIB, said the EU-wide lender was in the process of examining whether any of its funds had been used to help the company cheat emissions targets.

The EIB could recall up to €1.8bn in outstanding loans it has lent VW. Since 1990, the EIB has lent €4.6bn to the German car company, with some of that money intended to be used on development of low emissions engines.

The EIB’s warning comes after talk the European Central Bank could suspend its purchases of bonds backed by VW loans as part of its quantitative easing programme.

The carmaker has also said it will now be recalling up to 2,000 diesel cars sold in China.