Loan Articles

Officials have recently stated that government assistance to try and ease the country’s failing banking system is not going far enough, despite the hundreds of billions that the government has ploughed into the financial sector by way of a rescue effort. Analysts have stated that even with the latest schemes to try and sort out the problems in the financial sector not enough is being done.

One economist said that the latest efforts that had been put into place by the government would simply result in the ‘nationalisation’ and the establishment of a ‘bad bank’. The concerns have arisen despite the fact that the government has announced further measures to try and assist the financial sector, including insuring toxic debts and lending out billions to large corporations.

One industry official said: ‘One of the keys in the resolution of many banking crises is removing bad apples from the barrel - extracting the toxic assets from the banking system. This looks like a feeble excuse for not doing a proper job and makes us worry that the amounts involved are too large for the government to finance.’

Another official said that the measures had come too late to stave off the recession that has now gripped the nation, stating: ‘These measures may still leave banks cautious. ‘Even if credit supply does improve significantly, it is too late to prevent a severe recession.’