Eurozone data raises fears of second credit crunch

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Eurozone data raises fears of second credit crunch

Analysts say ECB likely to cut interest rates after official data shows loans to eurozone firms fell sharply while the volume of cash grew at slower rateThe prospect of a second credit crunch in four years came closer on Friday after official figures showed loans to firms in the eurozone fell sharply in December and the volume of cash grew at a slower rate than the previous month. Analysts said the figures painted a disturbingly gloomy picture of economic activity and were likely to spur the European Central Bank to cut interest rates from their current 1%.