• Ar
  • Es
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Feature
  • Videos
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Feature
Videos
Infographs
In Pictures
  1. Home
  2. News
  3. Europe
  4. German banks prepare for energy-related defaults: Bloomberg
Europe

German banks prepare for energy-related defaults: Bloomberg

  • By Al Mayadeen English
  • Source: Agencies
  • 5 Jul 2022 13:33
  • 1 Shares

According to reports, the country's lenders are stockpiling cash to support businesses if Russia cuts off gas supplies.

  • Bloomberg: German banks prepare for energy-related defaults.
    Bloomberg: German banks prepare for energy-related defaults.

Banks in Germany are expected to set aside additional funds to deal with a potential surge in defaults if Russia cuts off natural gas supplies, according to several high-ranking banking officials quoted by Bloomberg.

According to BNP Paribas Germany head Lutz Diederichs, as quoted by the media, if Russian gas supplies are completely cut off, Europe's largest economy is expected to enter a recession, and lenders will be required to bolster corporate loans with additional capital.

He echoed comments made by Commerzbank Chief Financial Officer Bettina Orlopp in an interview with the weekly Focus Money published over the weekend.

Senior financial executives are reportedly concerned about planned maintenance at the Nord Stream pipeline, which connects Germany and Russia, as several EU officials have questioned the possibility of resuming supplies.

Read next: EU needs at least 3 years to replace Russian gas: Fitch

According to the operator, both pipeline strings will be shut down for annual maintenance from July 11 to July 21, with the shutdown previously agreed upon with all partners.

German lenders' precautionary measures in the face of potential economic consequences from Russia and the West's current sanctions campaign have thus far been less than the large reserves they hoarded during the Covid-19 pandemic.

Germany is heavily reliant on Russian energy imports, and the country's economy would suffer if it lost access to the supply.

According to reports, Deutsche Bank CEO Christian Sewing has stated that such an occurrence would result in a "deep recession."

It seems that some of the countries pushing for sanctions on #Russia are the biggest importers of Russian fossil fuel.

Here are the top importers of #Russian fossil fuel and countries that cut their reliance on Russia.#Ukraine #NATO #EuropeanUnion pic.twitter.com/2IBFd13s6A

— Al Mayadeen English (@MayadeenEnglish) July 3, 2022

  • United States
  • Germany
  • France
  • Western sanctions
  • Russian Gas
  • Russia
Russia & NATO

Russia & NATO

As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?

Trending Now

All
This undated photo provided Thursday Jan.5, 2023 by the French Army shows AMX-10 RC vehicles (Jeremy Bessat/Armee de Terre via AP)

Western armored vehicles to Ukraine: breakthrough or stepback?

Most Read

Buzzfeed CEO Jonah Peretti (Getty Images)

Buzzfeed to use AI to write its articles after firing 180 employees

  • US & Canada
  • 27 Jan
Twitter headquarters is shown in San Francisco on Nov. 4, 2022 (AP Photo/Jeff Chiu, File)

FBI created dashboard to mislabel Twitter users as Russian bots

  • US & Canada
  • 27 Jan
The Russian-manufactured Marker 2 tank-striker (Military Review)

Russia reveals Marker 2 combat robots

  • Europe
  • 26 Jan
Russian troops entering Donetsk in March 2022 (Anadolu Agency)

Russian troops enter Vuhledar, block Ukrainian arms supply path

  • Europe
  • 26 Jan

Read this

All
Lavrov: Algeria main contender to join BRICS
Europe

Lavrov: Algeria main contender to join BRICS

  • Today
Thousands of demonstrators wave banners as they stand near Downing Street in Westminster in London, Wednesday, Feb. 1, 2023 (AP Photo/Kirsty Wigglesworth)
Europe

About half a million workers demand wage increases in UK

  • Today
International Atomic Energy Agency Director General Rafael Grossi speaks in Tokyo, Japan, May 19, 2022 (AP Photo)
MENA

IAEA censures Iran over 'undeclared' change to Fordow plant

  • Today
Secretary-General of the Islamic Jihad Movement, Ziad Al-Nakhalah
Palestine

Exclusive: PIJ delegation, led by Al-Nakhalah to visit Cairo Thursday

  • Today
Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • About Us
  • Contact Us
  • Authors
Android
iOS