CFOs see credit crunch hurting into 2009

The impact of the credit crunch will last well into next year, according to
CFOs, but the long term availability of credit remains positive.

showed that most financial leaders expect the credit crunch to last
some time, with 21% expecting an improvement in the fourth quarter of this year
but 50% not anticipating an improvement until the first half of 2009. Some were
even more pessimistic – 11% don’t see conditions easing until the second half of
next year.

The survey also showed that the credit crunch is starting to impact on more
businesses, with 73% admitting credit was more costly and 62% finding it
difficult to obtain.

Deloitte partner Margaret Ewing said: ‘Despite reductions in base rates in
December and in February, corporates, like consumers, are facing tougher credit
conditions and, so far, lower base rates would appear not to be easing the

But the longer term outlook is better with most CFOs planning to raise credit
in the next 12 months and more of those surveyed intended to increase gearing
than reduce it.

Further reading:

our credit crunch special report

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