What is important now
Described as the “most important thing” Christoph Badelt the supply of liquidity to companies. Small businesses in particular, especially one-person companies, would have no scope at all. For them, credit checks would take too long and cash solutions would be needed.
Neither Wifo nor IHS are very worried about the banks, even if loan defaults increase. The domestic financial sector is now much better positioned than before Financial crisis 2008. “In Austria I don’t see any major problems in lending in the short and medium term, “he says Stove. There are also state guarantees.
Eurobonds: Not now
In countries like Italy the backlog of bad loans is much larger, but there is ECB has already responded extensively with long-term loans that banks can access. Both economists are currently still on the brakes when it comes to Eurobonds, i.e. the common borrowing in the currency union.
With an emphasis on currently: Bathes believes that a situation could arise that one would have to talk about the topic again in four months. Stove is against that “the third step is taken before the second”: The European Central Bank still have their OMT program in the quiver, that in the Euro crisis set up but never used. This was created at that time Italy shield from infection by the Greek crisis. With success.
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