Citibank has cut all lending in Denmark

[girl gone mad]

http://www.creditwritedowns.com/2009/02/citibank-has-cut-all-lending-in-denmark.html

This comes from the Danish daily Berlingske Tidene. It suggests that Citibank is cutting back all international lending. Citigroup has sold its German operations to a French bank and I understand they are cutting credit lines in the UK as well. In seeing all these stories together, one gets a full view of the kind of cutbacks now ongoing at troubled banks like Citigroup.

Citibank has stopped lending

- We are not offering loans at the moment because of the economic situation.
That is the message when you call to get a Citibank Denmark ‘quick and easy loan.’

The Bank has just closed itself for what banks are best: lending money. And it is still uncertain when Citibank will start lending money again, writes Ekstra Bladet Netsite, eb.dk.

Finn Ostrup who is a professor of Finance at Copenhagen Business School, believes that Citibank Denmark’s American owner, Citigroup, is about to go bankrupt.

“Citigroup would have gone bankrupt in December, unless they had been helped by the U.S. Government.

“They are still threatened with bankruptcy, and I think that is why they will not lend more money,” says Finn Ostrup to Ekstra Bladet.

For Danish Citibank customers bankruptcy could be a hard blow.

“If Citibank terminates loans, they might not be paid back right away,” says Finn Ostrup.

“If that happens, customers may try to obtain money elsewhere. But if Citibank does not have the option of canceling loans, customers will have no problems,” he says.

Ekstra Bladet tried all day to get a comment from the responsible representatives from Citibank, but failed.

source: http://www.business.dk/article/20090219/finans/90219042/

[TwixVoy]

1. Ruh roh

[snot]

2. maybe i should go to bed, but

i do not understand what these sentences mean:

"“If Citibank terminates loans, they might not be paid back right away,” says Finn Ostrup." If you stop making loans, payback is a non-issue, no?

“If that happens, customers may try to obtain money elsewhere. But if Citibank does not have the option of canceling loans, customers will have no problems,” he says." Double_HUH??

Maybe problems in translation . . .

[girl gone mad]

3. Yes, I think it is a poor translation.

My interpretation is that if Citi is allowed to terminate existing loans, borrowers will have to seek third-party loans to pay Citi back, which may take some time. If Citi is not allowed to terminate the loans, the borrowers are okay(for now).