Dutch economy worsens, but loans are cheaper than ever

The state of the Dutch economy worsened in May, according to figures from the central statistics office CBS on Monday. However, the Dutch state was able to borrow €1.1bn at an interest rate of 0%.

According to the CBS, the economy shrunk 1.1% in the first quarter of this year with three successive quarters of negative growth. This means the Netherlands is still officially in recession.
The capital market interest was 2.0% in May, the lowest level in ten years. House prices were 5.2% lower than a year earlier, and industrial sales prices were 2.6% higher than in April 2011.
Meanwhile, the state borrowed €1.1bn at 0% interest on a short loan that runs until August 31, the Nos website reports. It also refinanced a loan of €1bn until the end of the year at 0.014% interest.
Interest rates remain low because investors are keen to move their money to the northern countries of the EU. The interest on a ten-year loan is at an historic low for the Netherlands at 1.55%.