Europe’s Firms Seek Most Emergency Funds Since Pandemic Peak
- Relationship lenders extend short-term loans as costs climb
- Number of new facilities trails only the 2020 pandemic rush
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Firms grappling with high inflation and soaring operating costs are seeking fresh short-term liquidity lines in an echo of the worst days of the 2020 coronavirus pandemic.
European high-grade companies are taking out facilities maturing in two years or less, significantly shorter than the average five-year term of conventional loans. They’ve sealed €76 billion ($75 billion) of short-term financing this year -- the second-highest on record after the €153 billion extended in 2020, according Bloomberg-compiled data.