The financial turmoil forcing Swedish banks from lending to companiesFriday, 28 October 2011
The uncertain economic situation has started forcing banks from lending to companies according to a so-called credit barometer carried out by the bank, Danske Bank.
Although the study notes that the Swedish credit market continues to show strength but that the debt problems in Europe are dampening the lending spirits across the financial institutions.
AdvertisementBut it does not look like Sweden is really completely affected by the financial turmoil as though corporate life continues here as normal per se.
The survey, conducted in September and is based on more than one thousand corporate interviews, shows that one in four companies are adversely affected by financial turmoil and that they have therefore have to scaled down their investments and hiring plans.
Industries that have noticed that it has become increasingly difficult to get financing are in the areas of real estate and construction industry.
But there are big regional differences though. For companies in the North of the country – that is, Sweden, the rejection of an application for credit less unknown, while ten percent of the companies in Stockholm said their application for a loan over the past year was rejected.
By Scancomark.se Team
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