A new survey by Germany’s central bank shows
that refinancing problems have led to German banks tightening their
lending to businesses.
that refinancing problems have led to German banks tightening their
lending to businesses.
The Deutsche Bundesbank survey said that banks
are requiring more substantial proof of creditworthiness and are
imposing higher risk surcharges, which in turn is making it more
difficult for many German companies to obtain finance.
are requiring more substantial proof of creditworthiness and are
imposing higher risk surcharges, which in turn is making it more
difficult for many German companies to obtain finance.
Additionally, SMEs are not turning to alternative financing
methods such as leasing and factoring, because they are more
expensive, due to the higher default risk, said Ulrich Lenz, an
expert on the Mittelstand (Germany’s family-owned SMEs) at
Ernst & Young, a consultancy.
According to a separate study by the German development bank
KfW, it is Germany’s large enterprises which have been most
affected by the crisis, while medium-sized enterprises are facing
the least trouble accessing finance.
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