(23 May 2011 – Australia) Despite lower interest rates, companies are putting off borrowing because of concerns around Europe’s debt crisis says the Head of Business banking for NAB.Joseph Healy, the group executive of business lending at NAB says interest cuts alone are unlikely to reverse the slump in demand for loans from Australian businesses.
While demand for loans was generally low, Mr Healy said there were exceptions such as the mining sector. Also doing reasonable well were healthcare, business services companies in the accounting and legal fields and agriculture.
Mr Healy said he was “cautiously optimistic” of a rebound in business lending, but this was dependent on a return of some global stability.