24.3% of German companies report obstacles to obtaining bank credit: ifo

0
It is becoming increasingly difficult for companies in Germany to obtain new loans. Currently, 24.3% of companies in ongoing credit negotiations are reporting withholding from banks, the highest proportion since 2017. This is according to surveys by the ifo institute, a think tank economic.

“The difficult economic climate is currently making banks more cautious”, Klaus Wohlrabe, Head of Studies at ifo, said in a press release. “Without new loans, some businesses could struggle for economic survival.”

Among service providers, no less than 28.8% of companies looking for credit say that banks are reluctant to lend. In the manufacturing sector, about 8.4% of companies applying for credit in the chemical industry and 22.5% of those applying for credit in the automotive industry reported difficulties. In commerce, however, the figure was slightly lower at 15% of such businesses.

Businesses in Germany find it harder to get new loans. Currently, 24.3% of companies in ongoing credit negotiations are reporting restraint from banks – the highest proportion since 2017 in Germany, according to the ifo institute. Among service providers, 28.8% of businesses seeking credit say banks are reluctant to lend.

Nevertheless, it is the micro-enterprises and the self-employed who are the most affected. Around one in two businesses looking for credit here said it was difficult to get loans. “For micro-enterprises, other forms of financing such as bonds are more difficult or impossible to use. They often depend on bank loans,” Wohlrabe said.

Fibre2Fashion News Office (NB)


Share.

About Author

Comments are closed.