RTTNews - Tuesday, the Confederation of British Industry said shortage of trade credit insurance remains a worry. However, deterioration in credit conditions slowed further over the last three months and expects it to stabilize in the months ahead.
The latest Access to Finance Survey showed that a net 20% said availability of new credit lines over the last three months deteriorated. The easing of conditions for new credit supply is expected to continue with only a net 7% of firms see a further fall in new credit supply over the next three months. At the same time, no further worsening is expected for existing credit supply.
The survey was carried out between May 13 and May 22. Around 75 firms took part in the survey.
Ian McCafferty, CBI Chief Economic Adviser said, Big companies who were encountering serious problems getting credit at the start of the year are still finding it difficult, but they expect that the supply of existing credit will get slightly easier over the next few months.
The survey found that fewer businesses said cost of finance increased in three months to May. Further, the lobby said capital investment remains the business activity that is hardest hit, and employment is another key area being affected, with a negative balance of 35% saying that they reduced jobs in the past three months in response to the credit crunch.
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