29 July 2009 16:23 [Source: ICIS news]
TORONTO (ICIS news)--Germany’s banks are tightening access to credit and loans, a move that could choke off an emerging recovery in Europe’s largest economy, Munich-based Ifo research institute said on Wednesday, citing an industry survey.
The survey – which was based on some 4,000 responses of firms in industry, manufacturing, construction, wholesaling and retailing – found 45.1% of respondents assessing banks’ lending policies as restrictive.
Access to credit had become clearly more difficult in July compared with June, according to the respondents.
Complaints about restrictive credit policies by banks had increased across all economic sectors, Ifo said.
Banks were tightening credit despite the European Central Bank’s expansive monetary policies, it added.
This raised the risk that tight lending could choke off ?xml:namespace>
The credit concerns echoed recent remarks by BASF CEO Jurgen Hambrecht, who said in an interview this month that tight lending practices by
Smaller and medium-sized firms in particular were having a very hard time getting bank loans and credit, Hambrecht said.
Also on Wednesday, the Berlin-based DIW economic research institute said
In line with its earlier forecast, DIW said
While production had hit a bottom,
In related news, Bayer on Wednesday reported a plunge in second-quarter sales volumes at its MaterialScience division and said that certain capacities within that segment would be permanently shut by the end of the year.
BASF is due to report second-quarter results on 30 July.
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