- The gap between the countries of Europe more broadly. One reason for the level of mortgage interest rates in each country after the European Central Bank (ECB) lost control over the cost of borrowing.
ECB funds shows, interest rate loans to small enterprises in Spain is higher than the German businessman. The interest rate on the loan Matador State even has soared to its highest point in four years. By contrast, in Germany, in fact lending rates at a record low.
ECB notes, mortgage interest for loans of more than 1 million euros maturing in one to five years for small businesses by 6.5 percent in Spain in July. This is the highest rate since late 2008.
In Italy, the interest rate reached 6.24 percent for the same loan. Compare this to Germany, lending rates on the same loan at 4.04 percent only.
Interest rate gap is certainly not beneficial for the company in the Southern European countries. Therefore, the high lending rates making them less competitive than companies in Northern Europe.
Head of Sovereign Ratings Fitch Ratings David Riley said, this fragmentation is getting worse. "If this trend continues to gain momentum greater profits then we will play a fundamental change in the euro zone. This will cut the Euro and possible reasons could more easily decide," he said.
Barclays economist Julian Callow rate, interest rates disparity makes the condition worse. He said the Spanish who are doing fiscal austerity grow bitter
ECB funds shows, interest rate loans to small enterprises in Spain is higher than the German businessman. The interest rate on the loan Matador State even has soared to its highest point in four years. By contrast, in Germany, in fact lending rates at a record low.
ECB notes, mortgage interest for loans of more than 1 million euros maturing in one to five years for small businesses by 6.5 percent in Spain in July. This is the highest rate since late 2008.
In Italy, the interest rate reached 6.24 percent for the same loan. Compare this to Germany, lending rates on the same loan at 4.04 percent only.
Interest rate gap is certainly not beneficial for the company in the Southern European countries. Therefore, the high lending rates making them less competitive than companies in Northern Europe.
Head of Sovereign Ratings Fitch Ratings David Riley said, this fragmentation is getting worse. "If this trend continues to gain momentum greater profits then we will play a fundamental change in the euro zone. This will cut the Euro and possible reasons could more easily decide," he said.
Barclays economist Julian Callow rate, interest rates disparity makes the condition worse. He said the Spanish who are doing fiscal austerity grow bitter
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