News from 2017-04-20 / KfW Research
KfW Credit Market Outlook April 2017
New lending to businesses and self-employed persons picked up in the final quarter of 2016. Banks made 2.6 % more loans to companies than in the previous year as the growing debate over rising borrowing costs boosted credit demand. This was aided by the interest rate reversal in the USA, an optimistic view of the economic trend, and the gradual normalisation of inflation. But the upturn in the credit market is not likely to be sustained. Amid large political risks, entrepreneurs will probably remain cautious with their investment decisions despite positive sentiment.
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