According to the European
Investment
Bank, billions of pounds will be used to flood the damaged
car sector during the first half of this year. At this stage,
the EIB is rejecting complaints from
carmakers that it is delaying
lending and not lending enough.
Car companies and their
car finance arms desperately need an injection of
capital.
The EIB is contributing the majority of the £2.4 billion pledged to
UK car markers, and has set a limit of 400 million euros per
company per annum. The bank, the chief executive said, was not
intending to bailout car companies needing total restructuring, but
instead will help companies to produce
green vehicles .
Chief executive Philippe Maystadt reportedly commented: The
fact that the EIB is responding quickly to the crisis without
sacrificing financial prudence shows that we have not over-promised
and are performing well in the current challenging climate.
Although we cannot work miracles on our own, the EIB stands at the
service of Europe and will continue to play a strong and active
role in spurring economic recovery.
