Eurozone bank lending to business was squeezed further in July in spite of clear signs of an economic recovery across the region and European Central Bank attempts to kick-start credit markets.
Rather than borrowing, businesses overall repaid €26bn in July, only slightly less than the amount they paid back in June, according to ECB statistics published on Thursday that are likely to strengthen the central bank's view that the eurozone economic recovery remains fragile. Consumer borrowing was also weak, with loans to households showing no growth over the past year.
Eurozone economic activity has shown clear signs of returning to growth recently, with France and Germany already out of recession.
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