Germany 'faces new credit crunch'

Economy Minister Mr Bruederle has appointed a "credit mediator"

Germany's Economy Minister Rainer Bruederle has warned that German firms face another credit crunch if the country's banks do not lend more.

In a television interview he said: "They should be giving out more credit. If they don't do this the government can resort to regulatory measures."

Mr Bruederle has also appointed a "credit mediator", Joachim Metternich, to work with banks and companies.

The government hopes that Mr Metternich will make loans more easily obtainable.

A statement said the new "credit mediator" would be charged with "compiling complaints from companies seeking external funding and finding constructive solutions with credit institutions".

Mr Bruederle said that France had already introduced the role "with great success".

German Chancellor Angela Merkel discussed the issue of business finance with bankers and industry leaders in Berlin on Wednesday.

Mrs Merkel and ministers met company bosses, union representatives and bankers to discuss an idea suggested by Deutsche Bank chief Josef Ackermann for banks to set up an emergency fund for small and medium-sized firms to ease their capital access issues.