(MENAFN) Based on the many senior banking executives reported by Bloomberg, banks in Germany are anticipated to set aside additional cash to be ready to handle a potential increase in defaults if Russia cuts off natural gas supply.
According to BNP Paribas Germany CEO Lutz Diederichs, who was mentioned in the media, in the event of a total cessation of Russian gas supplies, the biggest economy in Europe is predicted to enter a recession and the lenders would be obliged to boost corporate loans with more cash. In an interview with the weekly Focus Money over the weekend, Commerzbank Chief Financial Officer Bettina Orlopp made several remarks that he reiterated.
Senior finance sector leaders are allegedly concerned about planned repairs at the Nord Stream pipeline, the primary gas pipeline amongst Germany and Russia, since numerous European Union authorities have questioned the possibility of a resumed supply.
The operator claimed last week that both pipeline strings is going to be shut down for yearly maintenance from July 11 to July 21. They added that the stoppage had been previously agreed to with all partners.
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