EBRD reportedly chokes on financing for Polish Volkswagen plant

By bne IntelliNews December 17, 2015

The European Bank for Reconstruction and Development (EBRD) has reportedly halted €250mn of financing for the construction of a Volkswagen factory in the Polish town of Wrzesnia, local press reported on December 17. Unnamed sources claim the move is in connection to the emission's scandal haunting the German carmaker.

The report will stir worries in Visegrad. The auto sector provides a huge chunk of GDP across the region, and Volkswagen units are important manufacturers in each of  Slovakia, the Czech Republic, Hungary and Poland.

While the Polish economy is not nearly as dependent on automaking as its peers, the Volkswagen investment is not small. The factory in Wrzesnia, whose construction has been underway since October 2014, is planned to produce 100,000 Crafter vans each year and employ 3,000. The investment’s value is estimated at over €1bn.

Volkswagen representatives told local media the investment is not in danger and the factory will be completed on time. Production is scheduled to launch in the second half of 2016. Polish analysts suggest to Puls Biznesu that the investment is too important for Volkswagen to halt it, even should the EBRD freeze its financing.  

The German company is still struggling to resolve the emissions cheating scandal that erupted in September. Volkswagen admitted it has falsified emissions tests of its cars, spurring investigations and lawsuits in several countries.

 

 

Related Articles

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Poland shrugs off EU bid to toughen rule of law probe

The EU’s General Affairs Council urged Poland on May 16 to talk with the European Commission about its alleged violations of the rule of law, as Brussels continued to hold back from imposing ... more

Moody’s raises outlook on Poland to stable

Moody’s Investor Service affirmed Poland’s sovereign credit rating at 'A2' on May 12, and raised the outlook on the sovereign to stable. The improvement of the outlook comes on the back of ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss