Credit conditions to worsen in Q4

Credit conditions continued to tightened in the third quarter and are likely
to deteriorate further, according the latest
of England Credit Conditions Survey
for the third quarter.

The survey found corporate credit availability had been tightened more than
expected over the past three months and further reduction in corporate credit
availability was likely in Q4.

Commenting on the survey, Hetal Mehta,
& Young
ITEM Club senior economic advisor, said banks were still
unwilling to lend to each other and the amount of credit available for lending
to other companies and individuals was still falling.

‘With the on-going financial turmoil, the situation is likely to worsen in
the coming months – banks expect defaults on all lending to increase,’ he said.

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