According to the BGA exporters association German firms risk a “massive credit squeeze” by late summer unless banks are able to lend more freely.
BGA President Anoton Boerner said in a statement “It’s clear that access to credit has already got much more difficult” adding “By late summer at the latest, the situation will drastically deteriorate and then we’ll be risking a massive credit squeeze.”
To avoid this, banks must be able to get their toxic assets off balance sheet as quickly as possible and further measures must be taken to improve their liquidity.
The comments come in the wake of Wednesdays ECB 1-year refinancing, which saw the central bank lend 442.24 bln euros to banks.
