News Summary: Lending still weak in eurozone

AP News
Posted: Oct 25, 2012 1:56 PM
News Summary: Lending still weak in eurozone

CREDIT CRUNCH: The European Central Bank said Thursday that loans to non-bank businesses in the 17-nation eurozone shrank 1.4 percent year-on-year in September, double the contraction reported the month before.

FRACTURE FEARS: The numbers show the economy is struggling despite efforts by the central bank to stimulate credit and calm financial markets fearful that the eurozone might break up.

NEITHER A BORROWER, NOR A LENDER: Businesses see no reason to borrow to invest in expanding production. Meanwhile, banks in some countries have less to lend AS they struggle to recover from losses on real estate loans and on government bonds.