Volkswagen Bank receives German government guarantees for 2 billion euros
19 Feb 2009
Volkswagen Bank GmbH has received a framework guarantee of up to € 2 billion from the German Financial Markets Stabilisation Fund (SoFFin) for the refinancing of automobile loans, the bank said in a release.
"With the framework guarantee, we can effectively assure the supply of credit to our dealers and end customers and thus help moderate the repercussions of the finance crisis," Frank Witter, chairman of Volkswagen Financial Services AG, said.
The so-called framework guarantee is the weakest form of the assistance provided by the SoFFin. The granting of the framework guarantee for refinancing does not involve any provision of equity capital aid from the state for Volkswagen Bank GmbH. The Volkswagen financial services providers are solidly capitalised, have not invested in problematic bonds and securities, and have no corresponding need for write-downs as a result, the release said.
The company said it has secured credit supply for small and medium-sized businesses and end customers.
VW financial services providers have a very solid equity base and a robust business model, it added.
