Eurozone business loans drop sharply in July: ECB
AFPFRANKFURT--Lending to businesses in the debt-mired eurozone contracted sharply in July, data published by the European Central Bank showed on Wednesday, souring recent positive sentiment about a nascent economic recovery.
August 29, 2013, 12:22 am TWN
Private sector loans dropped by 1.9 percent in July in a year-on-year comparison, the ECB said, after already contracting by 1.6 percent in June.
That was “a new negative record” for the single-currency area, said Berenberg Bank economist Christian Schulz.
Loans to nonfinancial corporations continued to decline, contracting by 3.7 percent in July after a drop of 3.2 percent in June.
At the same time, loans to households edged up by 0.1 percent following a stagnation the previous month.