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The cheap money which banks received is not being passed on to firms and households (Photo: Stately Payday Loan/Wikipidea)

Slow credit flows spark worries over EU recovery

Bank credit to businesses in the eurozone shrank further last month despite current favorable conditions on the money markets, sparking fears over the true state of the economy in Europe.

Loans to businesses and households in July slowed to the record lowest annual growth ever, according to figures released by the European Central Bank (ECB), the main financial institution of the 16-strong currency union, released on Thursday (27 August).

In the private sector, credit provided ros...

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The cheap money which banks received is not being passed on to firms and households (Photo: Stately Payday Loan/Wikipidea)

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