WASHINGTON — Spanish economic woes are not stopping anytime soon, says the International Monetary Fund (IMF).
Reuters reports that the prolonged economic recession could force banks to cut lending even more. Without more lending, it will be hard for borrowers to find ways to have enough capital to create projects and conduct business.
The IMF said that although the lender’s solvency improved, record unemployment among the young people and the overall country will continue to drag the country down even further down the economic ladder with low credit.
The European Union’s leading organization, the European Commission, has so far ruled out lending more money and bailing out Spain.
Germany is facing the issue of having to bail out other EU countries time after time, which is unsustainable. Countries like France and Greece are facing economic woes in addition to several Eastern European countries like Bulgaria.