Time for banks and investors to step-in

Economic recovery needs banks and funds to adjust their standards now: S&P’s  Rafael Gonzalez. “Most Latin American central banks have extended liquidity facilities to increase bank lending to SMEs. What we have experienced is that funds have not yet reached these firms”, said the country CEO of rating agency Standard and Poor’s in Colombia, Rafael Gonzalez. He noted that banks are in good financial shape to mobilize government money to rescue ailing firms. “Banks still have pre-crisis risk standards. If they want to help, they will probably have to relax their credit standards,” Gonzalez stated. “I believe that banks have been mostly reactive in the face of the crisis.” Bond issuance is an alternative for larger firms to tap much-needed […]