Personal Finance

EU bank suspects VW took out loan of €400m (£357m) to create cheat device

The European Investment Bank said on Tuesday it suspected Volkswagen may have fraudulently secured a loan of €400 million (£357m) to develop technology used to cheat EU emissions tests.

EIB chief President Werner Hoyer said the bank was reviewing the conclusions of a probe by the EU’s anti-fraud office OLAF into whether the German automaker used the loan to make the “defeat device” in the so-called dieselgate scandal.

He added that the Luxembourg-based EIB had suspended business ties with VW and is not considering any new loans to the automaker.

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