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EMEA lending drops 34% to $343bn in 2012

Syndicated lending in Europe, the Middle East and Africa (EMEA) fell 34% to $343bn in the first six months of 2012 to 2003 levels as euro zone turbulence put companies off borrowing, Reuters has reported. Lending rose across the region in the second quarter in all areas other than the Middle East. Banks had money to lend to key clients, but the main issue facing the market was the lack of activity as companies remained wary of new loans and mergers and acquisitions (M&A) activity remained depressed in volatile markets, said Kristian Orssten, managing director and head of JP Morgan's European loan and high-yield capital markets group. "The second quarter was disappointing because of the lack of deals and activity and low levels of M&A," said Orssten.