Loans for the debts of SMEs

As mentioned in the title, they rejects credit for debts of SMEs by 25% because they do not contemplate all the requirements requested by them.

To take into account in the French banking window, only 7% of the requests for credit from small and medium-sized companies ( SMEs) does not pass the filter. In Spain , entities reject one out of every four applications requested. And less than half (44%) get all the money they ask for, when in France that proportion reaches 80%.

Both countries represent the two extremes of access to credit in the euro zone , x-rayed by a survey of the European Central Bank (ECB) where this survey, for which 5,320 SMEs have been consulted between November 19 and December 18 2009, reflects that financing conditions in the second half of 2009 were somewhat less harsh than in the previous semester. The improvement is almost imperceptible in the case of Spain, where the rejection of credit requests (25% of refusals) was even higher than in the first semester (20%), according to the responses of the 1,004 Spanish SMEs consulted.

In addition, they are the only ones that consider access to financing as the most serious problem (34% of responses), when for the rest of countries (such as France, Germany and Italy) and for the whole of the euro zone the biggest obstacle It is the lack of consumers. The valuation of Spanish SMEs , very negative, is related to their perception of the economic and business situation, more skeptical, as well as the increasing proportion of firms that declare a deterioration of their own resources and their credit history. The ECB comment supports the theory, repeated over and over again by Spanish banks, that the credit tap is closed more due to demand rather than supply problems (fewer requests and fewer solvents).

Thus, 64% of Spanish SMEs said that billing has fallen compared to the previous half (less than 50% in the euro area) and 70% responds that their profits have fallen (50% in the euro zone). Something important to note is that the collateral effect of the deterioration of the economic situation is that Spanish SMEs did not appreciate, overall, increases in wage costs, which did occur in the rest of the countries.

But the ECB survey also incorporates data that question the supply of Spanish entities. The balance between entrepreneurs who believe that the availability of credit improved and those who say it worsened is -48, much higher than the average for the euro zone (-32). And, in the opinion of Spanish SMEs , the financing conditions have worsened considerably. 60% of the consulted firms warn that the interest rate applied in their operations increased in the second semester, although the Euribor (reference in the mortgage market ) fell in that period and is at historical lows. And most SMEs say that other types of costs added to credit were increased, repayment terms were reduced and financial institutions increased the guarantees required. 60% of respondents believe that the willingness of banks to give loans has worsened , twice as much as in the rest of the countries. They are also critical of public measures to facilitate credit, which does not include the financing of working capital, one of its most pressing problems.