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CBI challenges GDP optimism on return to growth.
Archived article dated Thursday June 18th 2009
Commenting on the CBI challenging GDP optimism on return to growth, Mark Spinner, partner at international law firm Eversheds comments...
“There are certainly signs that confidence levels are returning but banks are still not lending enough and continue to have a mindset of reducing exposure where there are significant credit risks rather than deploying more capital. “When the banks do start lending in appropriate volumes I think the general public will initially feel as if the recession is biting deeper as a number of businesses currently in 'intensive care' are put into administration. This will happen as more buyers are available (through the availability of additional bank debt) to buy the distressed businesses which at present are mostly surviving as a result of the fact there are no obvious buyers. Currently, however, the banks would prefer to continue to support the underperforming business rather than take a full impairment, with no idea of when, and if so how big, a return they will get on their defaulted debt position.”
For further information please contact markspinner@eversheds.com
Tagged as: cbi | gdp | eversheds
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