ECB brings in measures to Boost Business
Yesterday the European central bank introduced several measures to encourage growth within the Eurozone including imposing a negative interest rate and deposit rate for banks.
These measures were introduced so as to encourage lending and the promotion of business throughout Europe as unemployment rates remain high.
The ECB has now set its benchmark interest rate 0.15% from the previous 0.25% so as loans will now be that much cheaper along with a negative deposit rate of -0.1% in hopes that banks might be more inclined to lend to businesses rather than hold onto money.
There was also the announcement that long term loans are being offered to commercial banks until 2018 with a cap of 7% being lent to individual companies. What this means is that it is more likely an individual bank can borrow more from the ECB if it has lent more money to businesses.
With these benefits in abundance and a relatively cheap work force to be found due to the unemployment situation throughout the continent, it could be very advantageous to consider incorporating in Europe at this particular time.
With the Eurozone slowly growing, these measures have been introduced to encourage a more rapid progression of this growth and businesses are the ones who will be benefitting.