More NewsHalf of Firms Lose at Least One Credit Line

Half of Firms Lose at Least One Credit Line

Half of firms have experienced the loss of at least one credit line, according to a European Association of Corporate Treasurers (EACT) pan-European survey during June and July 2009. The survey aimed to establish how borrowing conditions and banking relationships for companies have changed in the current financial crisis since September 2008.

  • Nearly 30% of the companies have had at last one bank cancel credit lines.
  • Banks have increased margins charged for the overwhelming majority (80%) of the companies surveyed.
  • Margin increases have been at least 0.5% for one third of the companies.
  • Banks have been relatively supportive in agreeing to increases in committed credit lines – 36% of the companies had made this request and in 64% of the cases the response was positive.
  • Nearly half those surveyed do not see an end to the crisis earlier than 2011.

Commenting on the survey results, EACT Chairman Richard Raeburn said: “We can see clearly how corporate Europe continues to be affected by the banks’ actions in increasing the margins they charge on lending to companies. At a time when all businesses are struggling to survive and if possible grow – despite the recession – increased borrowing costs add to their burden. Many companies face reduced availability of credit and sadly the survey shows that this is impacting a high proportion of European business.”

Related Articles

Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

3m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

4m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

4m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

4m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

4m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

4m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

5m Tasja Botha
FX for corporates: 5 best practices for treasurers

Economy FX for corporates: 5 best practices for treasurers

5m Mateo Graziosi