Europe’s emergency loan schemes stir fears of a debt trap – ZAWYA

Europe’s emergency loan schemes stir fears of a debt trap – ZAWYA

Europe's emergency loan schemes stir fears of a debt trap Europe's emergency loan schemes stir fears of a debt trap | ZAWYA MENA Edition HomeEconomyGlobalArticleEurope's emergency loan schemes stir fears of a debt trap Credit to non-financial companies in the euro zone hit an 11-year-high in April    The Euro currency sign is seen in front of the European Central Bank headquarters in FrankfurtMILAN/PARIS/MADRID  - Michele Berteramo, owner of the Movida restaurant and cocktail bar on Milan's Naviglio Pavese canal, had been about to spend 40,000 euros ($45,270) on renovations when the new coronavirus pandemic struck northern Italy.Instead he burnt through the cash keeping his business afloat during lockdown. Movida reopened on May 18, but is struggling to break even as crowds stay away from the popular nightlife district."We've been able to skip rent payments, but it can't last forever ... we are going to need bank financing to operate," said the 46-year-old restaurateur.Instead he burnt through the cash keeping his business afloat during lockdown. Movida reopened on May 18, but is struggling to break even as crowds stay away from the popular nightlife district.MILAN/PARIS/MADRID  - Michele Berteramo, owner of the Movida restaurant and cocktail bar on Milan's Naviglio Pavese