The cheap borrowing costs have met with a little success in reviving investment and spending and due to it the loans to companies and households in the euro zone has shrunk for the eighth month in December.

The availability of cheap loans has failed in stimulating the investment and spending in loan industry. The data of European Central Bank has revealed that the mortgage lending to the private sector has fallen down by 0.7pc in the comparison of the same period during the last fiscal year. In December, the monthly flow of loans to non-financial firms fell by 22 billion Euros which followed the fall of 7 billion Euros in November month. The monthly flow of loans to households also witnessed the drop down of 3 billion Euros in December month but in November month there was a rise of 6 billion Euros.
European Central Bank is trying to insert the cheap funds through the monetary system but still it is not available to households and businesses all across the Euro zone as few countries are putting great efforts for getting their economies back on the right track and some progress has been marked in this direction. Spain has seen the largest monthly drop down since July in December month as the data showed that Private sector lending has fallen by 22 billion Euros. Private sector lending in Portugal has come down by 2.6 billion Euros which is the biggest drop for the country in a year. However, Italy has registered an impressive rise of 12.6 billion Euros to 1.757 trillion in private sector lending. In the mean time if you want to borrow fast cash advance feel free to visit at: - [http://www.instantloansforbadcredituk.org.uk/]
Howard Archer, economist at HIS Global Insight said, "The liquidity position of Euro zone bank's improved during 2012 and this has made a little effect in increasing the private sector lending."
ECB has brought some relief to the Euro zone crisis as it announced a bond-purchase programmer which is new and yet unused. But economy remained in weaken position and it was expected to have contracted in the ending months of the 2012.
Mario Draghi, President of ECB marked in the beginning of the New Year that some indicators had been stabilized at low levels and financial market's trust also had noted some improvement. He also said that ECB's accommodative policy should play vital role in the recovery during the final months of this year.
Marie Diron of Oxford Economics said that the positive response about the future of Euro Zone which had triumphed in financial markets till now would possibly take time in appearing to greater credit availability and economic growth.