Le magazine du trésorier - n°67 - 3ème trimestre 2009 - (Page 38)
TREASURERS’ ASSOCIATIONS How Borrowing Conditions are Affecting European Business The European Association of Corporate Treasurers (EACT) is a grouping of 18 national associations representing treasury and finance professionals from 17 countries of the European Union. The EACT conducted a pan-European survey during June and July 2009 to establish how borrowing conditions and banking relationships for companies have changed in the current financial crisis since September 2008. 381 answers were received from 12 countries.The distribution of the responses – which came from all major countries in the European Union – is shown below . The key messages coming from the survey are: G G G G G G Half of the companies surveyed have experienced at least one bank reducing existing credit lines Nearly 30% of the companies have had at last one bank cancel credit lines Banks have increased margins charged for the overwhelming majority (80%) of the companies surveyed Margin increases have been at least 0.5% for one third of the companies Banks have been relatively supportive in agreeing to increases in committed credit lines – 36% of the companies had made this request and in 64% of the cases the response was positive Nearly half those surveyed do not see an end to the crisis earlier than 2011. 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. The survey also confirms what has been known anecdotally for some time – which is that continued lending by banks is accompanied with increasingly tight covenant and other financial conditions. European business – and the people whose livelihoods depend on the prosperity of small and large companies – continues to pay the price for the failure of the banking system and its regulators to ensure that risk was being properly priced and controlled”. You will find details of the survey results on the ATEL site : www.atel.lu
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Table des matières de la publication Le magazine du trésorier - n°67 - 3ème trimestre 2009