European banks 'less keen to dish out business loans'
Article by Mozo
Plenty of Australian companies have relied on business loans provided by European banks in the past, but unfortunately it seems that more lenders are reducing how much money they issue to firms.
According to Barclays economist Kieran Davies, European corporate lending to Australia has fallen by more than 30 per cent since 2009, the Sydney Morning Herald reports.
This is a blow for smaller enterprises in particular, as many have little option but to secure a loan if they have any ambition to expand.
Obviously, the financial situation in the eurozone has not helped matters at all and banks have become far more cautious about who they lend to.
However, the results of an EU summit may ease some of the strain on the struggling euro currency, as banks will be able to receive rescue funds.
Australian treasurer Wayne Swan was quoted as saying: "Europe still faces deep-seated challenges that will take many years to address, but this is a significant step toward greater fiscal and banking integration across the Euro area."