Credit access has improved moderately for enterprises. The credit constraint perceived by small and medium-sized enterprises (SMEs) eased in the first quarter but remained tight. Large enterprises, on the other hand, reported moderately tighter credit constraints. The imminent economic rebound in some sectors is likely to have facilitated the positive development in credit access for SMEs.

Businesses applied for more loans again at the start of the year. The end of the interest-tightening cycle has made businesses of both size classes more eager to borrow again, with 32.5% of larger firms expressing an interest in taking up loans. Thus, loan demand from large enterprises is back in the average range since 2017. The increase in demand from SMEs was slightly weaker. In the first quarter, 20.5% of SMEs took part in a loan negotiation. Demand is likely to stabilise further as the economy recovers.

KfW-ifo Credit Constraint Indicator Q1 2024(PDF, 214 KB, accessible)

Press release