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 say.
Subscribe from just €1 for the first month!
All Digital Access + eReader
Unlimited Access for 1 Month
Then €19.99 a month after the offer period.
€149 For the 1st Year
Unlimited Access for 1 Year
90 Day Pass
Get a Business Account for you and your team