Improvement in credit conditions coming to a soft landing?
Deloitte Belgian CFO Survey Q1-2011
The net balance of CFOs who think credit is costly has slightly increased again in the first quarter, following the significant decrease we had witnessed in the second half of last year.
Interest rates are going up, but short term rates are still perceived as low by the vast majority of respondents. The Belgian Central Bank and the Planning Bureau expect interest rates to further increase this year.
Credit is widely available, and the positive trend that started coming out of the recession in the middle of 2009 - and that strengthened throughout 2010 - continues. The net balance of CFOs reporting credit is available has now reached 50%. The credit crunch definitely seems to have come to an end.
Looking forward, CFOs expect further price increases and/or stringent lending terms in the next 6 months.