Corporates struggle to secure fixed-rate loans

Business borrowers are struggling to secure fixed-rate funding to hedge against further tightening by the ECB because the two pillar banks have begun adding large premiums to this kind of loan, according to corporate treasury and SME sources.

Small and medium-sized companies are being exposed to potential losses of hundreds of thousands of euro in interest rate risk, as the banks are making it uneconomical to switch from variable rate facilities, the sources ...