I am optimistic that this package will effectively mitigate the negative feedback loops between the banks’ deleveraging and the real economy. But quick and decisive action is now warranted in Spain, and any further delay should be avoided, as the longer one waits, the more expensive it is likely to get.
With regard to corporate finance, private banks remain cautious in extending loans to firms with high credit risks, while they continue to be more active in extending loans to blue-chip companies. Their lending attitudes seem to be becoming slightly more accommodative in areas such as terms and conditions for lending.