Economy unlikely to rebound unless lending market improves

As loans are very expensive and difficult to get, people prefer to adjust spending and give up goods not strictly important to them; however, the lack of domestic consumption is killing companies’ businesses and stalling economic rebound.
On the other side of the fence, bankers are citing the high risks and uncertainty that in fact discourage clients from taking out loans, while banks can comfortably invest their cash in government securities, for which they also ask for increasingly high yields. Non-governmental loans saw an uninterrupted decline in 2009 and are now recording anaemic rises, whilst the volume of loans granted to the state is climbing at a two-digit pace. Consumption continues its free fall, with messages coming from bankers and the government not likely to encourage recovery.