Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Interest Rates

News : Interest Rates

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

Germany sees no rise of the 'zombies' despite low rates

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/18/2017 | 12:36pm CEST

FRANKFURT (Reuters) - There is no sign of a rise in the proportion of "zombie firms" in Germany despite low borrowing costs that reduce the incentives for banks to pull the plug on clients in arrears, the Bundesbank said on Monday.

The German central bank has long opposed the ECB's ultra-easy policy of low interest rates and massive bond purchases, citing the risk that it would keep unviable companies artificially alive, among other arguments.

But it saw no sign of that happening at home, however, putting the share of German firms with a negative cashflow at just 2.2 percent in 2015, barely up from 1.4 percent at the start of the crisis in 2007.

"The proportion of zombie firms out of all companies in Germany is small and has not increased during the period of low interest rates," the Bundesbank said in its monthly report.

It also said the German economy is expected to extend its brisk momentum into the winter months, while reiterating its view that it may slow down after next year.

(Reporting by Francesco Canepa; Editing by Mark Heinrich)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Interest Rates"
07/19Following the Fed, Central Banks Are Ready to Raise Rates
DJ
07/19Euro zone banks at risk if rates rise sharply - IMF
RE
07/19ECB to hike rates before next downturn, say confident economists - Reuters poll
RE
07/18Powell Affirms Fed's Plan to Raise Interest Rates Gradually Before House Panel -- Update
DJ
07/18Powell Affirms Fed's Plan to Raise Interest Rates Gradually Before House Panel
DJ
07/18BOK needs to closely monitor outflows as Fed raises rates - board member
RE
07/17Powell Says Fed Should Keep Gradually Raising Interest Rates
DJ
07/13German, Belgian and French bond yields hit fresh lows as safety bid expands
RE
07/13Federal Reserve Report Defends Use of New Tools to Set Interest Rates
DJ
07/13Bank of England's Cunliffe sees case for 'stodginess' in setting interest rates
RE
Latest news "Interest Rates"
Advertisement