Eurozone: Borrowing falls to 20-year low

SGGP 07/27/2023 08:56

The European Central Bank (ECB) released quarterly survey results showing that borrowing demand from businesses in the Eurozone has fallen to its lowest level since 2003 after the ECB raised interest rates sharply.

According to the survey results, the demand for loans in the second quarter of this year decreased much more sharply than the banks had previously forecast. The ECB said that rising interest rates and falling investment demand were the main factors leading to this situation.

Amid a weakening property market, banks in the eurozone also reported a fall in demand for home loans in the second quarter, although the decline was smaller than in previous quarters. The survey also showed that growing pessimism among eurozone households also reduced demand for consumer credit.

The Frankfurt-based ECB has raised borrowing costs at its fastest pace ever to curb runaway inflation after the Russia-Ukraine conflict sent food and energy prices soaring.

Source: https://www.sggp.org.vn/eurozone-vay-von-giam-muc-thap-nhat-trong-20-nam-post699154.html