Accelerated financial repair
Deloitte Belgian CFO Survey Q3-2010
For the first time since the launch of the survey,
The perception of the net balance of CFOs on credit availability has reversed from negative to significantly positive. More than half of the CFOs report credit as easily available.
Moreover, CFOs now see the cost of new credit as being lower than at any time since the CFO started: the net balance of CFOs who think the bank borrowing is costly became negative, although interest rates have not decreased significantly in the last few months. Put another way, this is the first time that more CFO’s have rated credit as being “cheap” rather than “costly”.
With the current low long term interest rate, over 75% of the CFOs believe intrest rates will increase in the next 6 months.
CFOs expect supply of credit to further improve in the short run: the expected improvement in supply has shifted forward in time for the first time since the launch of this survey. The financial repair that had started slowly in the beginning of this year, is further strenthening.