18 October 2008
Amsterdam — He lays the blame for the situation on the credit crisis. The weakened housing market in the United States and parts of Europe, as well as losses on the stock markets, have meant that less money is being spent and less imported.
He also says that the restructuring of the financial sector will have consequences for the granting of credit. Banks will want to maintain their cash reserves and will, therefore, be less prepared to lend money. This, in turn, will make it more difficult for companies to invest in growth.
Mr Brouwer made his prediction on the same day that the Dutch banking and insurance concern ING announced it was in the red. The bank announced third quarter losses of half a billion euros. It declined to comment on whether it would apply for emergency funds from the Dutch government.
[Radio Netherlands / Expatica]