As banks raise interest rates and tighten the credit standards for loans, the number of German companies finding it more difficult to obtain loans are rising in an economy that is likely to undergo a mild recession this year, an ifo Institute survey showed Thursday. The share of companies in ongoing credit negotiations, who reported restraint on the part of banks, climbed to 29.9 percent in December from 24.3 percent in September, the survey found. "Banks are gradually increasing interest rates on loans and are more reluctant to grant them," Klaus Wohlrabe, head of surveys at ifo, said. "The era of low interest rates is over for now."
That means, many companies will have to get used to this and adjust how they structure their financing accordingly, Wohlrabe added.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.