Risks are clearly tilted to the downside – Luis de Guindos

“The risks are clearly sloping down”, The Vice-President of the European Central Bank (ECB) warned on Monday, Luis De Guindos.

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“News about a possible vaccine encourages the hope for a faster return to pre-pandemic growth levels“.

“The economic impact of the pandemic is highly skewed at the sectoral level.”

“Other actions on bad loans could include guidance on best practices for government-sponsored securitization schemes, or new solutions that would help troubled companies, which would be viable to restructure outstanding debts and obtain new actions.”

“A premature withdrawal of loan guarantee schemes may induce banks to tighten credit standards“.

“Will be It is essential that banks are willing to make use of available capital buffers to absorb losses without excessive deleveraging. ”

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