In the economic crisis, companies can no longer get new loans so easily. One group is currently having a particularly difficult time in the negotiations.
In times of economic stagnation, companies are finding it more difficult to obtain loans. The banks further tightened their lending requirements in the third quarter, as the state-owned KfW banking group reported based on economic surveys by the Ifo Institute. As a result, 34.5 percent of large companies complain about difficult negotiations with credit institutions – a new high after an increase of 8.7 percentage points since the previous quarter.
Large companies in the manufacturing sector are particularly hard hit. 40.4 percent of industrial companies interested in loans complained about restrictive behavior on the part of banks – almost twice as high as in the previous quarter. “The ongoing industrial recession is likely to ensure that banks examine loan requests from this sector of the economy particularly closely,” explains KfW research expert Stephanie Schoenwald.
Things don’t look much better for medium-sized companies: 31.5 percent report high hurdles when granting loans, an increase of 3.7 percentage points. As a result, demand for new loans is declining for all companies.
Source: Stern
