- WARNING: European Central Bank Propping Up EU’s ‘Zombie Banks will DESTROY Europe
by JON ROGERS, http://www.express.co.uk/
EUROPE’S economy is fundamentally flawed with the European Central Bank (ECB) keeping alive “zombie” companies and banks, the head of a German economic think tank has warned.
The Institute for Economic Research (IFO) in Munich has revealed that the economies across the European Union (EU) are still being hindered by the large amount of “zombie” economies – those companies and banks that are in difficulties but are being kept alive by toxic loans and debts.
President of the IFO Clemens Fuest said: “The problem of zombie companies and banks is still serious. Especially in Greece, Italy and Portugal, the proportion of bad loans in bank balances is still far too high.”
According to a recent study by the Bank of America, some nine per cent of the largest exchange-traded companies in Europe are currently such undead companies.