Euro zone firms continue to load up on credit as economy reopens: ECB data

FILE PHOTO: People wearing protective masks walk in the Montorgueil street as France reinforces mask-wearing as part of efforts to curb a resurgence of the coronavirus disease (COVID-19) across the country, in Paris, France, August 22, 2020. REUTERS/Christian Hartmann

FRANKFURT (Reuters) - Euro zone companies continued to load up on bank credit in August, European Central Bank data showed on Friday, two months after most economies had eased restrictions on economic activity aimed at controlling the coronavirus pandemic.

Bank loans to firms rose by 7.1% year on year, extending a borrowing boom that started in March when large parts of the euro zone’s economy came to a standstill and entrepreneurs were forced to draw from their credit lines to pay their bills.

Reporting By Francesco Canepa; Editing by Toby Chopra