Berlin In view of rising interest rates and the feared recession, companies in Germany are finding it more difficult to obtain new bank loans. 29.9 percent of those companies that are currently negotiating a loan reported reluctance on the part of the banks in December. In September it was only 24.3 percent, as the Munich Ifo Institute announced on Thursday in its quarterly survey.
“The banks are gradually increasing lending rates and are more cautious in lending,” said Klaus Wohlrabe, head of the Ifo surveys. “The days of low interest rates are over for the time being.” Many companies would have to get used to it and adjust their financing structure.
The banks are taking a closer look at the service providers in particular: 34.6 percent of the companies looking for credit reported that the financial institutions had become more restrictive. Again, gastronomy stands out with 67.7 percent. In industry, the value was around 28 percent. In retail, on the other hand, it was just under 21 percent.
Small businesses and the self-employed continue to be hardest hit. Almost every second service provider in this segment reported problems getting fresh money. “The current economic situation is difficult for some self-employed people,” said Wohlrabe. “For them, the bank loan is still one of the most important financing instruments.” This exacerbates the situation for many self-employed people.
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According to economists, the German economy is heading for a recession as it is being hit by the energy crisis, material shortages, rising interest rates and high inflation. However, hopes have recently grown that there will be no sharp slump and that there will only be a mild recession.
The Ifo Institute, for example, is only expecting a mini decline in gross domestic product of 0.1 percent this year. The wave of bankruptcies feared in view of the difficult framework conditions has also not materialized so far.
More: Bundesbank Vice President warns banks to be careful when lending
