Euro Lending Curbs Keep Lid on Growth

Amid ongoing declines in bank lending, many Eurozone companies are finding they must be self-sufficient from a funding perspective.

Don’t ask Victor Duran Naranjo about the European recovery that investors are betting on.

His eight-employee software company, based in Spain’s Canary Islands, still can’t get a bank loan even after its revenue rose 10 percent last year.

‘Big Challenges’

Total bank lending in Spain, the euro area’s fourth-largest economy, has dropped 21 percent since 2008, according to the Bank of Spain. While November saw the first month-on-month increase since March, up 0.2 percent on October, it nevertheless represents an annual fall of 13 percent.

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