According to a survey by the Ifo Institute, it is becoming more difficult for companies to obtain new loans. “Currently, 24.3 percent of those companies that are currently conducting negotiations are reporting reluctance on the part of the banks. This is the highest value since 2017,” said the economic researchers on Monday in Munich. “The currently unfavorable economic development is making the banks more cautious,” said Klaus Wohlrabe, head of the Ifo surveys. “For some companies, economic survival could become difficult without new loans.”
Small businesses and the self-employed were hit the hardest: every second company looking for a loan reported that it was difficult to get loans. “Other forms of financing such as bonds are hardly usable for micro-enterprises. They are therefore often dependent on bank loans,” said Wohlrabe.
In retail, almost 15 percent of companies looking for credit are affected, 22.5 percent of car manufacturers and 28.8 percent of service providers reported that they no longer get loans so easily. As part of the Ifo business surveys, the participating companies are asked quarterly whether they are conducting credit negotiations with banks and, if so, whether the banks behaved accommodatingly, normally or restrictively. (dpa)