Corporate credit is available, but costly
Deloitte Belgian CFO Survey Q2-2010
Since the launch of the survey two years ago, we have been closely monitoring the credit conditions for cooperates. Throughout the recession and the recovery, the reported cost of bank borrowing had slowly decreased, until the first quarter of 2010 when the trend reversed. CFOs perceptions on the cost of bank borrowing are at present again at the level of Q1 2009 – costly!
The positive trend we have witnessed on the availability of bank borrowing has not reversed. Whereas bank borrowing was reported very difficult to obtain in the midst of the recession early 2009, it is again a more generally available source of corporate funding.
The short term interest rates remain low for the majority of CFOs.
A majority of CFOs expect long term interest rates to increase in the next 6 months.
A majority of surveyed CFOs do not expect significant changes in the bank's lending terms in the next 6 months.