GERMANY: Credit constraints at historic low

Credit constraints for German companies fell to 17.1% in January from 17.4% last month, marking a new historical low, according to a new study.
The financing conditions for German companies remain excellent at the beginning of 2015, while the drop in credit constraints reflects the inflationary flood of money that banks expect from the European Central Bank, said the Munich-based Ifo Institut.
The level of credit constraints for all sectors is about 1 to 3 percentage points lower than a year ago.
Credit constraints in manufacturing remained unchanged at 15.0% and for large companies it continued to fall, sliding to 10.3%. The number of middle-sized companies experiencing problems accessing credit rose slightly, while the share of small firms remained constant at around a fifth.
In construction, credit constraints dropped to a new record low of 20.9%. There were also fewer firms reporting restrictive access to bank credit in the distribution sector.