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Eurozone banks expect higher demand for loans in the second quarter, as well as loosening of credit criteria, amid government guarantees and liquidity measures from national and monetary authorities, according to a survey by the European Central Bank . According to the ECB study, demand also increased in the first quarter from companies for emergency loans.
As much of the Old Continent is now taking timid first steps to lift the blockade, the eurozone economy is expected to shrink a tenth this year, and companies face increased liquidity needs to ensure their survival until it returns. to open up. The economy.
Banks’ internal criteria for making commercial loans had tightened in the first quarter, but the deterioration was small, according to the ECB’s survey of 144 euro zone financial institutions.
Central bank liquidity measures and government guarantees will take effect in the second quarter, which is why banks expect a significant reduction in criteria in the quarter through June.
Among the largest countries in the euro zone, commercial lending criteria have tightened in Germany and Italy, while in France they have remained unchanged.
“Commercial demand for loans or lines of credit increased significantly in the first quarter … in the second quarter, demand for credit is expected to increase further to higher levels since 2003,” the ECB said.
For households, the credit criteria have become stricter than for businesses, a trend expected to continue in the second quarter, the ECB added.
naftemporiki.gr
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