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Germans get serious about credit crunch

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Germans get serious about credit crunch

German economic minister Rainer Bruederle says German firms face another credit crunch if the country's banks do not lend more. A lending freeze has been the major problem facing Western banks in the aftermath of the October 2008 market crash, as banks seek to hold onto their existing assets. Now Bruederle says the government might resort to regulatory measures if the credit flows don’t begin again, saying he has appointed a credit mediator to work with banks and companies, to enable firms to get loans at reasonable rates. Germany’s Chancellor Angela Merkel is particularly concerned about the availability of credit to Germany's small and medium-sized firms, as they make up most of country's economy. Bruederle says France had already introduced the role of a credit mediator with great success. Read more: BBC, Bloomberg


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