ECB looking to begin another round of LTRO as growth remains stagnant 12/02/2013 - 00:00 A few months ago some economists were hoping that the relentless decline in credit growth in the Eurozone may have bottomed. The year-over-year changes in the area’s loan balances have turned in the right direction. Unfortunately the latest data show that not to be the case – both in corporate and consumer lending.This lack of credit expansion is a dangerous trend that could result in years of Japan-style stagnation. In order to address it, one approach the ECB is contemplating is forcing the banking system to use the new LTRO proceeds to provide capital into the consumer or corporate sector.
