Germany Faces Renewed Credit Crunch

Failure on the part of German banks to lend money risks pushing the economy back in to recession German’s Economy Minister warned in a recent television interview.

“They should be giving out more credit. If they don’t do this the government can resort to regulatory measures,” said Rainer Bruederle.

It was also announced that Chancellor Merkel will meet banking leaders to discuss the issue in Berlin. The Chancellor noted that she is particularly concerned about the availability of credit to Germany’s small and medium-sized firms that make up most of country’s economy.

BBC News

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