Small and medium-sized firms in the euro zone are finding it increasingly difficult to get credit, according to a new study from the European Central Bank (ECB).
The survey of 6,000 firms, which was conducted in cooperation with the European Commission, reveals that 77 per cent of companies applying for bank loans during the first six months of the year, received all or some of the amount requested. However, 12 per cent of companies had their application rejected.
Regarding the respondents’ assessment of changes in access to bank loans, 33 per cent of SMEs reported a deterioration in terms of getting credit. The majority of these companies attributed the difficulty in obtaining loans to the economic downturn, while increases in non-interest rate costs and in collateral requirements were also cited.
Looking ahead to the second-half of 2009, the majority of SMEs surveyed said they expected their ability to obtain financing to remain broadly unchanged.
