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No one would lend to them.
The government should also encourage banks to lend to them.
They complain that mega-banks, which got bigger after the bail-out, won't lend to them.
Even state-controlled banks are increasingly reluctant to lend to them.
Farmers all need credit, but banks will rarely lend to them.
Neither they nor the banks that lend to them want to take on extra risk.
For the time being, investors are still willing to lend to them at generous rates.
The Treasury can purchase equity in the troubled companies or lend to them, if needed.
Supplying the missing middle will require backers who want to invest in companies rather than just lend to them.
Foreign buyers almost always pay cash, he added, because banks in Croatia generally will not lend to them.
Until banks have incentives to lend to them, growth in the sector will be restricted, Ms. Sabavala said.
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