EBRD puts Poland's VW factory financing on hold

The European Bank for Reconstruction and Development has suspended funding of €250 million it had approved to help build a new Volkswagen factory in Września in the wake of the emission tests cheating scandal, according to two sources at the development bank quoted by Reuters. "It has been frozen," one of the sources who spoke on the condition of anonymity said. "At the very least it (the loan) is going to have to be repriced, but it could get pulled altogether," he said. The upheaval at VW, the unknown scale of a cost-cutting plan and the rise in the carmarker's own borrowing costs all contributed to EBRD's decision to freeze financing, Reuters said. A VW spokesman in Germany said the plant, which will cost a total of €1.1 billion  had already started being built and would be completed. The new factory in Września is about to be opened mid-2016, it will produce up to 100,000 VW Crafters.