The European Central Bank (ECB) said in its bank lending survey (BLS) on Tuesday that borrowing conditions for businesses in the Eurozone are expected to continue to improve.

"Banks continued to ease their terms and conditions on new loans across all categories, mainly driven by a further narrowing of margins on average loans. As with credit standards, the main factor contributing to the easing in terms and conditions was competition," the central bank said.

Demand for loans, especially for loans to enterprises, continued to rise, according to the survey.