Samba-REDF deal to finance housing projects

Updated 14 July 2013

Samba-REDF deal to finance housing projects

Housing Minister Shuwaish Al-Dhuwaihi and Samba Chairman Eissa Al-Eissa have jointly launched a housing loan program introduced by the bank in association with the Saudi Real Estate Development Fund.
The program will enable Samba customers who have applied for REDF loans to own a suitable house on the basis of a financing scheme that follows Shariah principles, said an official statement after the signing ceremony.
Speaking to reporters, Al-Eissa said the program goes in line with the government’s initiatives to solve the country’s housing problem and enable Saudis to have their own homes. “This will also strengthen partnership between public and private sectors,” he said. The additional finance provided by Samba would help Saudis build houses that cost more than SR 500,000, the maximum value of loan given by REDF, he pointed out.
Al-Eissa said Samba’s agreement with REDF reflects its desire to expand its financing programs through channels having developmental dimensions, adding that it would serve the interest of the Kingdom and its people.
The bank’s additional housing finance scheme was designed with a long-term vision and offers added value to the bank’s customers. “It also goes in line with Samba’s efforts to enable citizens to own their houses following easy methods,” Al-Eissa said.
The additional loan is given to those Saudis who are entitled to receive a housing loan of SR 500,000 from REDF. The REDF loan will be considered the first installment for purchasing a house while the bank will pay the full value of the house and the customer has to pay back the loan in monthly installments.
The scheme covers various types of homes including villas, duplex and flats. This finance is provided to a customer only after he/she receiving a preliminary confirmation of REDF loan, the bank said. The house will remain in the bank’s ownership until the customer pays back the loan in easy installments.

New emissions blow for VW as German court backs damages claims

Updated 26 May 2020

New emissions blow for VW as German court backs damages claims

  • Scandal has already cost firm more than €30 billion; ruling serves as template for about 60,000 cases

KARLSRUHE, Germany: Volkswagen must pay compensation to owners of vehicles with rigged diesel engines in Germany, a court ruled on Monday, dealing a fresh blow to the automaker almost 5 years after its emissions scandal erupted.

The ruling by Germany’s highest court for civil disputes, which will allow owners to return vehicles for a partial refund of the purchase price, serves as a template for about 60,000 lawsuits that are still pending with lower German courts.

Volkswagen admitted in September 2015 to cheating in emissions tests on diesel engines, a scandal which has already cost it more than €30 billion ($33 billion) in regulatory fines and vehicle refits, mostly in the US.

US authorities banned the affected cars after the cheat software was discovered, triggering claims for compensation.

But in Europe vehicles remained on the roads, leading Volkswagen to argue compensation claims there were without merit. European authorities instead forced the company to update its engine control software and fined it for fraud and administrative lapses.

Volkswagen said on Monday it would work urgently with motorists on an agreement that would see them hold on to the vehicles for a one-off compensation payment.

It did not give an estimate of how much the ruling by the German federal court, the Bundesgerichtshof (BGH), might cost it.

Volkswagen shares were 0.5 percent lower. The BGH’s presiding judge had signaled earlier this month he saw grounds for compensation.

Costs mount

“The verdict by the BGH draws a final line. It creates clarity on the BGH’s views on the underlying questions in the diesel proceedings for most of the 60,000 cases still pending,” Volkswagen said.

A lower court in the city of Koblenz had previously ruled the owner of a VW Sharan minivan had suffered pre-meditated damage, entitling him to reimbursement minus a discount for the mileage the motorist had already
benefited from.

The court at the time said he should be awarded €25,600 for the used-car purchase he made for €31,500 in 2014.

“We have in principle confirmed the verdict from the Koblenz upper regional court,” said BGH presiding federal judge Stephan Seiters.

Volkswagen had petitioned for the ruling to be quashed altogether by the higher court, while the plaintiff had appealed to have the deduction removed.

A Volkswagen spokesman said that outside Germany, more than 100,000 claims for damages were still pending, of which 90,000 cases were in Britain.

The carmaker also said it had paid out a total of €750 million to more than 200,000 separate claimants in Germany who had opted against individual claims and instead joined a class action lawsuit brought by a German consumer group.

The carmaker said last month it would set aside a total of 830 million for that deal.

In a separate court, Volkswagen agreed last week to pay €9 million to end proceedings against its chairman and chief executive, who were accused of withholding market-moving information before the emissions scandal came to light.