It is becoming increasingly difficult for German companies to obtain new loans. In September, almost 30% of companies that are negotiating with banks for a loan reported that they were withheld from banks, the Institute of Economic Research (Ifo Institute) writes. In June, this figure was only 21.3%.

“Banks are gradually raising interest rates on loans and are reluctant to grant them,” says Klaus Wohlrabe, head of Ifo surveys.

“When the economy weakens, companies also have to offer more collateral,” he adds. The increase in restrictions on obtaining a bank loan is mainly related to service providers (from 21.8 percent to 31.5 percent) and production (from 20.7 percent to 27.7 percent).

Among electrical equipment manufacturers, slightly less than 40 percent of companies report reluctance on the part of banks. For manufacturers of machinery and equipment, this figure is 31.6 percent.

Due to the difficult situation in housing construction, banks are also wary of real estate companies (31 percent). In the events industry, this indicator is about 35 percent.

The share also increased in retail trade from 20.5% to 28.2%. For many retailers, the economic situation remains difficult due to the reluctance of customers to spend, and this is also reflected in credit conditions.