Net lending by German banks to Greece, Ireland, Portugal, Italy and Spain fell by 55 billion euros ($68 billion) to 241 billion euros in the first five months of the year, the Financial Times reported, citing an analysis of Bundesbank figures by Morgan Stanley. (MS:US)
The total now is the lowest since 2005, the newspaper said.
German banks’ net loans to Italy, for example, fell 25 percent in the five months to June 1, compared with a 7 percent decline in the whole of 2011, the FT said.
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