Banks putting brakes on lending until credit crisis outcome known - EVCA head

MADRID (Thomson Financial) - Major banks have put the brakes on lending in general "until the real extent of the credit crisis is known," said the Head of the European Venture Capital Association, Javier Echarri.

"We are in the same situation as three months ago," he told Bolsacinco in an interview.

Echarri believes that the situation will return to normal with major M&A deals being brokered again by next spring, "as long as there is no economic recession." Separately, El Economista reported that Santander SA and La Caixa will continue to provide financing for property projects in Spain, citing comments by Santander CEO Alfredo Saenz and La Caixa managing director Juan Maria Nin.

The executives were speaking during the Barcelona Meeting Point property fare which runs until tomorrow.

"The tap has not yet been turned off," they said, referring to the availability of loans for real estate companies.

The Spanish property market has been under pressure for several months. jdy/jms COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved.

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