Companies in Germany Have More Difficulty Obtaining Loans

German companies have somewhat more difficulty obtaining new loans. In September, 32.9% of companies in ongoing credit negotiations reported restraint on the part of banks (June: 27.1%). That’s the highest figure in seven years. “Since companies in Germany are currently investing little, it would be good if they could obtain loans more easily,” says Klaus Wohlrabe, head of ifo Surveys.

The Credit Constraint Indicator rose particularly sharply among service providers (from 27.0 to 35.7%) and in industry (from 26.2 to 34.3%). “A lack of orders in many sectors is causing banks to take a closer look when performing credit checks,” adds Wohlrabe.

In the construction industry (from 32.2 to 20.7%), wholesale (from 24.6 to 23.2%), and retail (from 30.0 to 27.0%), on the other hand, companies found it easier to obtain loans.