Dutch financial group ING (ING.AS) said on Tuesday it had lowered interest rates on loans to business as it said it expected the European Central Bank (ECB) to lower interest rates on Thursday.
ING said it had reduced the basis rate for business loans by 50 basis points to 5.15 percent from 5.65 percent, which it said would make credit more accessible particularly for small and medium-sized companies.
The financial group said it had seen demand for credit fall dramatically as a result of the economic downturn, as companies postponed investments due to the uncertain outlook.
The European Central Bank is expected to cut interest rates to an all-time low of 1.5 percent on Thursday, and analysts are seeking signals on where its rate floor lies as policymakers seem reluctant to go to zero. [ID:nL2901405]
In January, ING got state guarantees for 22 billion euros ($27.83 billion) of risky U.S. credit assets following a 10 billion euros capital injection from the Dutch state last year.
The company is divesting assets to reduce risks and cope with the credit crisis, while focusing on savings and investment products. ($1=.7906 euros) (Reporting by Catherine Hornby; Editing by Mike Nesbit)
ING said it had reduced the basis rate for business loans by 50 basis points to 5.15 percent from 5.65 percent, which it said would make credit more accessible particularly for small and medium-sized companies.
The financial group said it had seen demand for credit fall dramatically as a result of the economic downturn, as companies postponed investments due to the uncertain outlook.
The European Central Bank is expected to cut interest rates to an all-time low of 1.5 percent on Thursday, and analysts are seeking signals on where its rate floor lies as policymakers seem reluctant to go to zero. [ID:nL2901405]
In January, ING got state guarantees for 22 billion euros ($27.83 billion) of risky U.S. credit assets following a 10 billion euros capital injection from the Dutch state last year.
The company is divesting assets to reduce risks and cope with the credit crisis, while focusing on savings and investment products. ($1=.7906 euros) (Reporting by Catherine Hornby; Editing by Mike Nesbit)
