European Central
Reported to the Chairman of the Bank’s Supervisory Board European Central Andrea Enrea, today, Thursday, that the European Central Bank does not take into account the fact of a possible economic downturn.
Enria also stated that the risks of recession are hovering around the euro area greatly, and she inferred this from the unprecedented rise in energy prices in the euro area, as well as high inflation, even if inflation declines in the countries of the union, but it is still high, which leads to the continuation of the European Central in Raising interest to curb inflation, and then increasing the possibility of economic recession.
Enria indicated that the volume of non-performing loans in the consumption sector and early pensions, whether for families or companies, is already increasing, and attributed this phenomenon to the increasing rise in the interest rate, which is largely due to the tightening of the European Central Monetary policy, which caused severe damage to the residential and commercial real estate markets, as well as financing. consumer.
Anria confirmed the intention of the Supervisory Board to closely scrutinize the procedures of the eurozone banks in the next stage.
