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.
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.”