EIB reports record lending in 2009 amid credit squeeze
(VIENNA) - The European Investment Bank (EIB) dished out a record 79 billion euros (101.5 billion dollars) in credit last year as banks scaled back lending, its president said on Saturday.
The amount lent in 2009 by the EIB, the EU's long-term lending body, was a third higher than in 2008, Philippe Maystadt told a forum in Alpbach, western Austria.
The increase was due to the EIB "to a certain extent replacing" the financial sector in 2009, Maystadt was quoted as saying by Austrian news agency APA.
The EIB was expecting a reduction in lending in 2010, the Belgian said.
"This year we can reduce the volume for big companies, who can once again raise capital on the financial markets or from banks," Maystadt said.
Maystadt expected the EIB to increase its lending to the public sector and state-backed firms in the coming year amid budget cutbacks.
Maystadt also warned of a possible second recession.
"We see high deficits and debts, which reduces the room for manoeuvre," he said.
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