US Recovery Hampered by Tight Lending

Troubled Asset Relief Program

U. S. economy is recovering steadily but U. S. Treasury Secretary Timothy Geithner fears that tight lending practice by banks will create some problems.

The banks have curbed lending, and the recovery will partly depend on credit available with businesses.

The Troubled Asset Relief Program or TARP was started last year by the government, under which hundreds of billions of dollars were induced into big and small banks. And these banks are now trying to repay the amount which was offered to them earlier.

A meeting was held between the President Barack Obama and Geithner with some bankers at the White House to discuss the lending theme.

Geithner said that the Treasury will do all for making everything normal. He also said,” We cannot afford to let the country live again with a risk that we're going to have another series of events like we had last year”.

He said that the policies laid by the president are improving on the growth and also creating more job prospects.

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