2 yıl önce

'Difficult economic climate': German companies struggle to get loans

As many as 28.8 percent of companies seeking credit in the services sector reported difficulties, around 8.4 percent of chemical companies and 22.5 percent automakers.

AP

The smallest businesses and the solo self-employed were most affected due to their dependency on bank loans.

Around one in four German companies currently seeking new loans are reporting restraint from lenders as high inflation and concerns over energy supply rattle Europe's largest economy, according to a survey.

"The difficult economic climate is currently making banks more cautious," Information ve Forschung's (Ifo) head of surveys Klaus Wohlrabe said on Monday.

"Without new loans, some companies might struggle for economic survival," he added.

The figure - 24.3 percent - is the highest seen since 2017, said the Ifo institute, which conducted the survey.

As many as 28.8 percent of companies seeking credit in the services sector reported difficulties, around 8.4 percent of chemical companies and 22.5 percent automakers, Ifo said. In retail, the figure was 15 percent.

The smallest businesses and the solo self-employed were most affected due to their dependency on bank loans, according to the institute.

Germany is headed for recession as the energy standoff with Russia, rising prices and supply bottlenecks take their toll, with the government forecasting a contraction of 0.4 percent next year.