Bank lending to the non-financial private sector diminished by € billion overall in 2012. The contraction was chiefly in loans to firms. Lending activity has been conditioned by the recession. If, on one level, the decline in output and investment was reflected in a fall in demand, on another the high volume of non-performing loans increased the risks for intermediaries.
It is the time for correction. Hopefully by this time next year, so I believe, this country will be different. The key to successful recovery will be the patience of the man on the street and the political will to implement the 2012/2013 Budget as passed.