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OECD warns Italian banks on credit squeeze

Says continued interruption of investment cycle hampers recovery

19 November, 12:31
OECD warns Italian banks on credit squeeze (ANSA) - Paris, November 19 - The OECD said the continuation of the credit squeeze in Italy could hamper economic recovery in its Economic Outlook, released Tuesday.

The OECD said bank loans in Italy continue to wane, partly because of reduced demand, but higher interest rates in Italy than in other eurozone countries suggest that availability of bank credit is also low. If Italian banking system continues to restrict credit and interrupt the normal investment cycle, it will put brakes on economic recovery, warned the OECD.