State guarantees helped prevent drop in business loans – ECB survey

Lending money

Government loan guarantees helped keep loans to enterprises in the eurozone unchanged during the second quarter of the year, but that support may soon fall away.

According to the bank lending survey of the European Central Bank, financial institutions reported that state support played a crucial role for companies in most countries of the bloc. However, credit standards for households tightened further.

In spite of ample financial support, “banks continued to indicate the deteriorated economic

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