Most businesses avoid seeking any credit

Most businesses avoid seeking any credit

The majority of enterprises in Greece are not interested in seeking new financing from banks, as they are concerned by the high interest rates and the pressure on their profits, according to a report by the Professional Chamber of Athens.

The survey of 908 enterprises and freelance professionals in a broad range of sectors showed that three out of four respondents have not applied for any fresh credit in the last three years.

Out of the 76 percent who have avoided seeking financing, 32 percent say that one of the main factors for that has been the high interest rates on loans. At the same time, almost two-thirds (65 percent) of respondents said that the earnings of their venture have been reduced or remained unchanged over the last five years.

Bank of Greece data have shown that credit contraction came to 1.4 percent in November, as a result of the negative flow of financing for corporations and households, just as deposits continued to decline during the last couple of months.
The chamber also stressed that all recent discussions among business people focus on two issues: The settlement of nonperforming loans and the lack of liquidity in the market.

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