There are some reasons for that: credit demand is weak, but also interest rates for banks are much higher in Spain than in other eurozone countries. Spanish banks are assuming abnormally high premium risks and that is not going to change after they are told that a stressed situation is well covered.
Interest rates to lending money must be high to compensate the non performing assets. This shows that Spanish lenders still have many dirty assets, although they would not mean bankruptcy.
Be the first to comment on "Do not expect credit to start flowing immediately in the eurozone"