Volkswagen and PSA eyeing loans from European Central Bank

Article by Anita Panait, on February 17, 2012

Volkswagen AG and PSA/Peugeot-Citroen are considering joining a number of European companies that have been applying for the European Central Bank’s one-percent three-year loans.  The carmakers’ financing units are entitled to borrow from the ECB's longer term refinancing operation (LTRO) as they possess banking licenses.

The carmakers hope to add their names to a list of 523 lenders that have already borrowed EUR489 billion of the low-interest loans under the ECB’s program in December. Stefan Rolf, the head of securitization at Volkswagen Bank GmbH, confirmed that the carmaker is considering accessing the LTRO.

Peugeot's Banque PSA Finance unit, meanwhile, is currently holding talks with the ECB about a loan and is offering more than EUR1 billion of collateral, according to Chief Financial Officer Jean-Baptiste de Chatillon.

Huw Van Steenis, a bank analyst at Morgan Stanley in London, remarked that the auto industry is a significant provider of credit to the economy and the ECB is keen to get credit flowing where it needs to flow.  Van Steenis added that if giving loans to carmakers “helps that process,” then the ECB may feel “it's a good use of the money.”

Topics: vw, psa

If you liked the article, share on:

Comments

Recommended

August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 2017
A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries