Before the crisis, many large companies took out loans abroad to expand their activities. After the crisis began, the volume of loans provided to foreign companies fell sharply, but the market is now gradually recovering. The Office of Financial Statistics has published an overview of the financing situation for European companies and enterprises.
At the end of the third quarter of this year, the weighted average annual interest rate on loans provided by the EU to companies and enterprises amounted to 3.72%. Compared to last year, the weighted average interest rate almost doubled.
At the end of the third quarter of this year, the weighted average interest rate on EU loans to enterprises with a maturity of less than one year was 3.72%. Loans in euros for the same period were 3.6 times higher - 12.8% per annum; the weighted average interest rate on loans to enterprises over one year was 3.67%, which is 4.7 times lower than in EU countries. According to the bank, the weighted average interest rate on similar corporate and institutional loans was 16.3%. The annual interest rate in euros was three times higher at 9.9%.
In August, the weighted average annual interest rate on new loans from €1 million and up to one year offered by EU banks to companies was 3.36%. In September, the weighted average interest rate on new corporate loans for a period of one to five years and up to 1 million euros was 4.55%. The weighted average annual interest rate on new loans with a maturity of five years and up to €1 million was in August 4.16% for loans to corporate clients and 3.7% for loans with a maturity of five years and over €1 million.
For loans under €1 million, the lowest interest rate was in Austria, where the average interest rate on new loans in August was just 2.4%, followed by Luxembourg (2.42%) and Finland (2.6%). , Belgium (2.7%), France (2.82%), Italy (3.04%), Germany (3.04%), Netherlands (3.25%), Ireland (3.5%), Slovakia (3.71%) and Spain (3.77%) were also characterized by low lending rates. Lending rates were slightly higher in Greece (4.54%), Portugal (5.33%), Malta (5.99%) and Slovenia (5.91%). Cyprus is the only country where companies can take out a loan of up to €1 million (6.76%).
The cheapest place to borrow over €1 million in August was the Netherlands, where the annual interest rate was just 1.68%. Belgium (1.74%), Finland (1.77%), Italy (1.86%) and Luxembourg (1.93%) had borrowing rates around the same as the Netherlands in August. In Austria (2%), France (2.05%), Spain (2.11%), Germany (2.26%), Slovakia (2.37%) and Ireland (2.71%) lending rates in August were very low. Lending rates in Greece (3.23%), Portugal (3.42%) and Cyprus (4.19%) were slightly higher than the European average. Among the eurozone countries, the highest lending rates were observed in Slovenia (5.25%) and Malta (5.86%).