Berlin - The tightening of credit in Germany is becoming critical, Chancellor Angela Merkel warned in a video message Saturday. She said she would meet with banking industry leaders in Berlin this week to avert any credit crunch for medium and large businesses.
"We must note that we are in very critical situation," the chancellor said in the online speech, recorded in her office. She is set for the round of economic talks this Wednesday.
"We will speak with the representatives of the financial institutions about what we can do to avoid a credit crunch that would put the brakes on economic recovery," she said.
Merkel said it was right for banks to be careful, but they also had a pan-economic function as a service to the economy.
"That is why we will say very clearly that they must fulfil this function," Merkel said. The chancellor said the government would appoint a "credit mediator" to speak up for businesses who were having trouble obtaining loans at reasonable rates.
The Wednesday meeting at Merkel's office is to be attended by leaders of business, trade unions, the banks and academia.
Merkel warned that the economic crisis was not over yet, saying, "I am counting on the sense of responsibility of everyone who wants to help our country."
