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.

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