RT.com
05 Jul 2022, 16:13 GMT+10
The country's lenders are reportedly hoarding cash to support businesses if Russia halts gas supplies
Banks in Germany are expected to put aside extra funds to be able to tackle a potential spike in defaults if Russia cuts off natural gas supplies, several high-ranking banking officials said, as quoted by Bloomberg.
In case of a complete suspension of Russian gas supplies, Europe's largest economy is projected to fall into recession and the lenders will be required to bolster corporate loans with more capital, according to BNP Paribas Germany head Lutz Diederichs, as quoted by the media. He echoed comments made by Commerzbank Chief Financial Officer Bettina Orlopp published over the weekend in an interview with the weekly Focus Money.
The senior figures in the financial industry are reportedly concerned about scheduled maintenance at the Nord Stream pipeline, the key gas route connecting Germany with Russia, as several EU officials have cast doubt on the potential resumption of supplies.
Both strings of the pipeline will halt operations for annual repair works from July 11 to 21, the operator said last week, adding that the shutdown was previously agreed to with all partners.
The precautionary measures taken by the German lenders in the face of potential economic consequences stemming from the current sanctions war between Russia and the West have so far been lower than the large reserves they hoarded at the height of the Covid-19 pandemic.
Germany is highly dependent on continuing energy imports from Russia and a complete loss of access to the supply would hit the nation's economy hard.
Deutsche Bank Chief Executive Officer Christian Sewing reportedly said such an event would force "a deep recession."
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Nashville Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Nashville Herald.
More InformationZAGREB, Croatia: Authorities have said that a weekend bus crash near Varazdin in Croatia killed 12 passengers and injured 32.The ...
WASHINGTON D.C.: The U.S. will participate in a joint military exercise in mid-October with India, less than 62 miles from ...
SEOUL, South Korea: South Korea has launched a domestically manufactured lunar orbiter that took off from Florida's Cape Canaveral Space ...
MOSCOW, Russia: A leading Russian scientist in the field of hypersonic flight, Dr. Alexander Shiplyuk, has been arrested on suspicion ...
LOS ANGELES, California: During a meeting that was disrupted by protesters this week, the Los Angeles City Council voted to ...
WASHINGTON D.C.: The U.S. Justice Department announced this week that former Puerto Rico governor Wanda Vazquez has been arrested in ...
MIAMI, Florida: Carnival cruise lines, including Carnival Cruise, Princess Cruises and Cunard, have made plans to drop mandatory COVID-19 testing ...
NEW YORK, New York - U.S. stocks continued to mend fences on Monday, with gains by all the major indices."I ...
DUBLIN, Ireland: Amazon has received permission to build two new data centers in north Dublin. The Dublin City Council approved ...
LONDON, England: Despite a recent rebound, speculators in the international copper market, considered an indicator of the world's economic health, ...
SYDNEY, NSW, Australia - Disappointing economic data released Monday has triggered a slackening of key interest rates by the Bank ...
BEIJING, China - Following a meeting of the two countries foreign ministers, China and Nepal agreed to build the Trans-Himalayan ...