Bloomberg News

Zoellick Says European Interbank Market is Frozen, Welt Reports

January 12, 2012

Jan. 12 (Bloomberg) -- Europe’s interbank market is frozen and the continent’s banks are only lending to each other through the European Central Bank due to a lack of confidence within the financial industry, World Bank President Robert Zoellick was quoted as saying by German daily Die Welt.

If European banks don’t lend to each other, how can others in the U.S. or in China be expected to do it, Die Welt quoted Zoellick as saying at its economic conference in Berlin yesterday.

The newspaper quoted German Finance Minister Wolfgang Schaeuble as saying that Italy’s government had managed to balance deficit reductions and structural reforms as part of its effort to bring the country’s economy back on track. He said he was confident for 2012, while repeating his opposition to eurobonds, or joint euro area bonds, the paper reported.

To contact the reporter on this story: Jan Dahinten in Singapore at jdahinten@bloomberg.net

To contact the editor responsible for this story: Alan Soughley at asoughley@bloomberg.net


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